My machine has the heat and A/C too, but the A/C is not working. I put a 12v fan in the top of the cab, and that thing is worth its weight in gold. No matter how hot it gets, it's comfortable in the cab, with no door to worry about.
The heat is great. My son and I were moving pallets of crushed stone off of our trailer, and down to the an area under our porch that I am going to cover with pavers. I bought some very inexpensive forks that attach to the bucket. I don't even have to remove the tooth bar. They are fine, and are really sturdy. They were about $150 with free shipping off of eBay, and worth every penny.
I guess what I'm saying is that my machine is indispensable. I don't make my living off of running equipment, like most of the people here, but it's darned important.
I think you have to find a good, honest mechanic. There is no reason why simply equipping a machine with A/C would make it seem less powerful. Of course, if you are running the A/C, you are turning the compressor and that will take some horsepower. But if the A/C is not on, and assuming the clutch is properly disengaging the compressor when you turn the A/C off, the engine is just turning a pulley.
Losing an engine is never a happy experience, although I found it's not a big deal with my Case 1816 -- you can take out four bolts and slide the engine out by hand. With these machines, you can spend a lot more on bad hydro motors, valves and solenoids.
I wouldn't worry about the Deutz engines. Again, find a decent, honest mechanic. I found a Mennonite shop about 2 hours away. There are closer places, but these guys are fantastic. They completely rebuilt a backhoe attachment, and did a great job. Their shop rate is very reasonable, and they are scrupulously honest. I have complete faith in their work. They did a pre-buy for me on my T200. They replaced the timing belt, and it was not expensive at all.
I would get an estimate for a field rebuild. If it was more than 2k, I would go with a remanufactured engine. I don't know about replacing the oil cooler, but that doesn't sound right to me. If it's clean and holds pressure, I wouldn't bother. If you want, I'll check with my shop and see what they recommend. If it's a weak point in the design, they'll know.
Les