HD has agreed to pay $930 (cost of crankcase set) and the dealer agreed to pay about $1,000. My out-of-pocket cost for an engine rebuild will be about $2,500.
I've been a "nothing but HD" guy for a long time, but this most recent issue on top of previous issues (clutch, overheating and shutting down, etc.) has taken at least some of the fun out of riding. My wife and I agree that we're spending far too much time wondering what part's going to go next or where the bike's going to die on us. Too much to think about on a bike with under 20,000 miles. I never thought I'd say this, but it is likely time to start looking elsewhere to get the fun back.
Thanks for all the replies. Ride safe!