Yes, it's worth repairing the veneer. Yes, I've done a couple pretty badly damaged cabinets, one parlor and one regular treadle.
Here's a thread of the regular treadle I did with before and after pics:
{
http://www.quiltingboard.com/vintage...e-t204377.html }
The machine itself just needs cleaning and oiling and some rust repair. That's doable.
I had to reglue the bottom of the parlor cabinet and replace the veneer as it had gotten wet (water or moisture is the worst enemy of these old machines ) and all the glue just fell apart. I don't have good pics of that one.
Are you crazy? Well, no more than the rest of us.
Joe