Rebuild or replace?
Before I answer your Q about whether the engine needs replacing, I would like to say that it is a fantastic idea to learn as much about rotary ownership before getting one - this will save you time and money due to incorrect advice from supposed "rotary mechanics"
Your question has been answered before in this forum.
When an apex seal breaks/cracks it most often, if not always, damages the aluminium rotor housing surface. The small piece(s) of apex seals fall out of the rotor and are "run-over" by the rotor itself causing scoring of the housing sealing surface. Hence, the rotor housing MUST be replaced. Your cheap rebuilders will sometimes reuse these "damaged" housings to give you well, "a cheap rebuild" - BUT the compression of the engine will be low and not last long. High quality rebuilders in the USA never reuse rotor housing as they can afford RM2,000 per piece for a new one, which is only $500 in their currency.
If you're unforunate the extent of the damage may extend to damage of the rotor itself. That is, the apex seal groove of the rotor may be damaged if the apex seal breakage is severe and/or the breakage occured at high revs etc etc.
Most often (once they have been correctly measured for max wear limit) the iron housings that make up the rest of the engine "sandwich" can be reused very successfully. There are 3 iron housings namely front, rear and centre.