As someone who has mucked round with wrecked cars in the past, I'd say two things.
The damage doesn't look to be too bad. But you will likely have a terrible time getting replacement parts for it-maybe not so much the plastics, but things like the headlights, maybe the coolent reservoir, maybe the radiator or the condensor, any minor structure piece and airbags will presently be nearly impossible to find used (until more of these are on the road and wrecked) and you will likely pay a pretty penny from the dealer (not to mention the wait time on getting the parts). Airbags for just about any car can be rediculously exhorbitant, and then depending on the airbag computer, you might have to replace it or have a dealer reset it (something I'd bet they would NOT be willing to do).
Secondly, unless your insurance would be selling the car back to you WITHOUT a salvage title, the salvage price seems awfully high. I seem to recall the standard salvage value of most cars to be 20% of NADA value. That should put you close to $3.5 to $4K, I would think.
Good luck, whatever you do.