Well the real answer is not which alternative is better but which alternative is worse.
Why do you think the title will be "wrecked"? If you're saying that the car was totaled with only $5000 amount of damage, then the car isn't worth very much anyway, and I don't think it much matters.
If that wasn't what you meant, and you only meant that the hail damage might show up on CARFAX, and that the car wouldn't carry a salvage title if fixed up, then sure, I'd fix it, because you'll get practically nothing for it on a trade-in with $5K in hail damage.
Dealers don't want damaged cars, period. They'd "take it off your hands" and send it right to a low-budget wholesaler.