As I stated in my post above, I generally would agree with you - HOWEVER, if the gun is indeed sentimental and or inherited (as the OP stated), $350 is a small price to pay to preserve it and have it look basically as intended.
One gun I had professionally re-blued was my 1946 made Marlin 39A that I inherited from my Dad and it will NEVER be for sale - at least while I am alive. The gun (as gotten from him) was in perfect mechanical condition however he used that rifle so much, almost 50% of the bluing was gone and even with constant oiling, rust kept coning back worse and worse each time all over the gun. I made a decision based on the fact that it won't be sold and I do want to pass it down, so I sent it to Mid West Gun-works to be refinished. They did what I would call a spectacular job and the gu now looks better than the day it was made! The finish is flawless and it has now been at least 10 years since being done and it still looks perfect!
He had also worn off most of the finish on both the front and rear stocks and so while the rifle was out being refinished I refinished the stock myself. Once the gun came back and I put everything together, I was blown away on just how great it looked! Still looks like new and it is now 77 years old! I still shoot it on a regular basis and have no plans to retire it. Don't remember quite how much it cost me 10 years ago, but I know with freight it was slightly over $300 bucks - and iMHO worth every single cent!
If the OP's Chief's Special is also sentimental to him, $350 to have a proper re-bluing job is well worth it IMHO. Not only won't he be constantly worried about rusting damage again, but he can be proud f what he is shooting. Just think about how much most of us spend on things like eating out, traveling, liquor, etc. You eat and drink - it's gone the next day. You travel and it's just a memory weeks later. For something sentimental I don't think $350 is frivolous. YMMV