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TV prices have been dropping almost as fast as PC prices. Therefore, paying such prices for repair just may not make sense. Except for picture tube problems, most TV faults can be corrected without expensive parts, however. Keeping a 5 year old TV alive may be well worthwhile as basic TV performance and important features have not changed in a long time.
If you can do the repairs yourself, the equation changes dramatically as your parts costs will be 1/2 to 1/4 of what a professional will charge and of course your time is free. The educational aspects may also be appealing. You will learn a lot in the process. Thus, it may make sense to repair that old clunker for your game room or beach house. (I would suggest the kid's room but most TV watching just rots the brain anyhow so a broken TV may be more worthwhile educationally than one that works.)