You'll almost certainly be better off getting a new/used junkyard engine - though they seem to be getting more expensive every day.
Never heard of a piston hitting a spark plug. Usually it's something else in the chamber: valve seat, valve head, ring land, etc. Doesn't really matter, at that point your engine is pretty much junk.
There are a few of us that are looking into head porting. You might be able to sell it if the chamber isn't completely fubar'd, but at this point I'd plan on selling it for scrap metal.