1999 Toyota Clutch - 167,000 miles, replace or give up?

Hi - I have a 1999 Toyota Corolla that I love - it is in good shape physically (no rust) with some dents but is otherwise good mechanically except for the regular oil burning. I I think my clutch has finally crapped the bed and it is going to cost between 1,000 - 1,200 to replace. I drive less than 15,000 miles a year.

My pros in favor of fixing it:
- If I keep it another 3 years then we are talking 300-400 a year over time for the fix which is not terrible
- If I fix it and sell it then I should be able to at least get the repair cost back

- It seems crazy to spend $1200 on a 20 year old car? But is it?
- If I want to get something decent and used I am going to have to spend 5,000+ (where I live people are selling 15 year old Civics and Corollas for $3000.

Help sages of the Corolla forum!