Eh, $1,600 sounds cheap to me even if you have a lot of steel to put back in it. And the 2.3L turbo ain't a bad setup for a driver. I mean, crap, you could modernize the setup, and it would be a fun 25-30 mpg car that would be el cheapo to drive and keep running.
It's sort of special, and odds are, if you kept it long enough, some rich dude would come along and want it bad enough to give you what you want for it. Till then, drive 'er.