Labor to diagnose and repair anything electronic is expensive. Most shops have a $100 minimum just to check it out. You would probably be better off with an entry level 5.1 modern receiver than putting money into a repair of a 22 year old electronic product of any kind unless it was a rare classic...you would be amazed at the features on the new lower priced units from Yamaha, Pioneer etal....it might just create lifelong interest for you as a dividend.....you can use as a stereo only unit if thats all you want...
If he uses it as a receiver, instead of only as an integrated amplifier, you have given him bad advice. Most receivers these days have very poor tuners in them. He would be much better off either repairing his old unit, or buying another old receiver, if he listens to the radio.
Also, many older 2 channel receivers were made for 4 ohm speakers, whereas most home theater receivers (especially inexpensive ones) are not.
So, what he should do depends on whether he listens to the radio, and what speakers he is using.
You are right, however, that getting older equipment repaired is often not the most economical thing one could do, and, depending upon how the receiver is to be used, and with what, you may have given excellent advice. Or not.