This is a serious bummer. That engine should be fixable. Is there anyone else you can get to go over it yet again?
You said "throws code DTC 1-4 and starts to run rough/rich"
Is that code 1 and 4, or code 14? If 14, then recheck your Intake Air Control valve. If 1 and 4, then 1 is the HO2 sensor, of course, but the 4 is the crankshaft position sensor. That's a bit screwy.
If you do decide to ditch the engine, you can probably recover your recent costs and then some by carefully parting it out - besides the ECU, the starter, alternator, heads, lower unit, cover, cowlings, VST, fuel pumps and sensors will all likely fetch a decent price on eBay.