I didn't part out my jeep after I was told by friends that it looked totaled. but I had alot of money thrown into it before my accident and I decided to get it straightend... but even so I recommend keeping the jeep youve got versus parting it out. pictures never do a colision justice and the airbags did go off so you hit it pretty hard... but it doesn't sound nearly as bad as mine. A good frame shop can straighten the frame for a fair price (guessing around $500 at most) if it even needs straightening. I wouldn't be concerned about the condition of the sheetmetal... its a jeep afterall.
Theres lots of potential to turn that accident into a real cool jeep. get the steering links replaced and check that the brackets are all good and control arms replaced and check the fan/radiator, etc... its work but better than parting it all out.
*and you shouldve seen my hood and fenders and grill, it was really bad. But I'm reusing my banged up hood and tossed out the inner and outer fenders and got a free doner grill... back in business. The hood hinges just need to be straightened or replaced. your hood looks a little tweaked but still decent shape (get hood pins if your latch is busted). same with the grill and fenders. They are telling you to replace it I think because they are assuming you want to get it back to 100% factory looking.
best of luck whatever you decide.