Integrated Amp Recommendation

If you like it and would want to keep it why not have it repaired ? If not - it's a great moment to get something else.

Comparing the measurements on Stereophile of yours and the Parasound Halo, for sure just pay the $900 fee to fix it. Your device performs very well.

Unless you are emotionally attached to the amp,move on,lots of new and accomplished Integrated amps at the 2K price point.

@wsomers 

What kind of B&W 804 are yours? The latest 804 D3 or D2 or D1 or 804S? 
Those integrated that you listed above are very good for the money. If you want to go with the Musical Fidelity you should consider the M6si. The Rotel RA-1592 is very good at $2500 retail price and will pair well with your B&W 804. Rotel and B&W usually have good synergy together. The Parasound Halo Integrated is pretty awesome too. 

But since you already have a Naim streamer and a Naim DAC you won't need a DAC in the integrated amp. I recommend you get an analog integrated amp. There are countless options out there. The Rega Elicit-R or the Osiris analog integrated amps are spectacular sounding very musical. 

Time for something new!

Don't pay $900 to have that fixed. I'd almost bet a kidney that it's simply a bad Alps volume pot. They likely use the orange series which is junk unless it's only used for knob position tracking. Find a different, honest tech to install a Blue Velvet.

+1 with helomech; get the pot replaced for far less than $900.

Can you see the volume control with the lid removed?  If so, I would be inclined to give it a good shot of contact cleaner through any visible gaps in the control.  Might be a cheap fix.
For a new integrated, my recommendation is a Wired 4 Sound STI 500.  Both pairs of my B&W speakers sound better with this amp than any class a/b amps I’ve tried.  Note, I’m using separates not an integrated.

Best advice so far:
1.Try contact cleaner,most likely just dirty contacts...
2.As helomech stated,always get a second opinion...
 3.Something new...TUBES or a Hybrid(Tube Pre Amp,SS Power in 1 box(integrated amp)...

Go for a Musical Fidelity M6si.  Had one for a couple years and thought it was a really great integrated for the money.

I'd get a 2nd opinion on the repairs first, especially if you like that unit. 

I have owned a couple of Peachtree's integrateds (the Grand X1 and Nova 300).  If you need a lot of power and a lot of bells and whistles (DAC, headphone amp, HTPB, phono) the Nova 300 is really nice and you can find them close to your budget.  They're both great sounding units and very neutral. 

Ultimately, I replaced both, "downsizing" to something more simple.  I replaced the Grand X1 with a used Audio Research VSI55 (love the tubes!) and replaced the Nova with a Heed Elixir ($1200) which I think sounds better than the Peachtrees.

Thanks for all the great feedback!  My 804's are 15 years old, made before the diamond series was introduced.  I open up my Musical Fidelity integrated and sprayed contact cleaner on the volume control, but that didn't solve the problem.  The Musical Fidelity distributor informed me that it's normal that the capacitors will dry up after 15 years or so, and was not surprised that they need to be replaced.  I trust the tech service who gave me the estimate, although apparently they have a reputation for being very expensive.  But then there seems to be no one in New York City who can do it for less.  

Does anyone have an opinion on whether the new Musical Fidelity integrateds are as good as the old ones like I have?  The tech guy, who seems honest and very knowledge -- and a real purist -- feels the old ones are better, with a warmer sound...

No decent quality cap should "dry up" within 15 years. I'm not sure about their older integrateds but their newer models use cheap, Taiwan-sourced caps. 

It appears as though the volume pot in your amp is located toward the middle of the chassis. It has a tube that transfers the torque from the knob. Did you removed the cover and spray into the actual pot?

Get rid of this amp. Yes, after 15 years quality capacitors should be alright. I have 20 years old Audiolab integrated and 18 years old Australian Redgum integrated. Both work as they did years ago. 
Analogique in New York City ?

Yes, I opened it up and sprayed it with contact cleaner but that didn't help.  It's also now making a slight popping noise occasionally when I play music -- even without changing the volume.   I spoke with the guy at Analogique and he said, although it's impossible to say without looking at the unit, that it would probably be a few hundred dollars to repair it.  But then who knows what else may go wrong.  I'm inclined to get a new one.  

Does anyone have an idea whether the A3.2 integrated amp would have resale value on Audiogon "as is"?

It would. $100. Maybe.