What is this Omega Seamaster 60 actually worth in this condition?

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No we don’t really have a fundamental difference in our approach. I’m answering in regard to what the OP might want to do. Doesn’t mean that’s what I’d want to do.

Sure.
 
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As long as you don’t replace the soul of the original watch, it’s not a franken. 🙄
Ah. Soul.
 
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Is it a franken if you need to change everything bar the plates and cocks due to water damage ? Where is the boundary ?

Where the line is drawn is certainly an interesting question. Not sure if I can tell you exactly where it is, but I do know where it isn't...
 
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My mechanic recently told me of a customer who brought a 15 year old BMW 750il in for a full service (Inspection II for the BMW guys) and full brakes & rotors. The cost was $3k. The customer was shocked as he only paid $4k for the car. It was a $70k car when it was new and $3k for that level of service on a $70k is considered normal....the car doesn’t know it’s not a $70k car anymore.
 
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My mechanic recently told me of a customer who brought a 15 year old BMW 750il in for a full service (Inspection II for the BMW guys) and full brakes & rotors. The cost was $3k. The customer was shocked as he only paid $4k for the car. It was a $70k car when it was new and $3k for that level of service on a $70k is considered normal....the car doesn’t know it’s not a $70k car anymore.

Very true. Also, a full engine rebuild on a Yugo or a VW beetle is still an engine rebuild. Not going to cost 150$. Labor costs are not fully correlated to object value, that's something I have to explain at least once a month.
 
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To speak to the point @w154 was making, if that same $4k BMW needed transmission work, the owner could have gone to a pick-a-part yard and found a used transmission and had a mechanic install it for him- and possibly have gotten lucky.
My mechanic would have offered him a factory remanufactuered transmission or could have done a full rebuild in his ailing one, but would not have installed a parts yard transmission without rebuilding it as he couldn’t warranty the work.