I definitely wouldn't repair it, even if it's possible. With the price of new laptops plummeting, it's just not worth it.
Also, I'd tell your insurer that you intend to go to the insurance industry ombudsman if they don't cough up. Even if you lose the case it won't cost you anything, but it will cost the insurer several hundred pounds (win or lose). That might help to concentrate their minds a bit.
With regards to new laptops, I like the look of the new Dell Vostros (although I don't like Dell as a company). They're intended for small businesses, but IMHO they appear to offer better value and look nicer than Dell's consumer models.
The EEEs are also very nice but a bit too small for me. If Asus brought out a full size Laptop based on the same technology and styling, I'd be all over it.