Poor Poor Peugeot

So I bought an old Puegeot racing bike about 3 months ago, and I have been loving riding it around and was even commuting to school on it until I took a spill about a week ago.  Now, I knew there were some problems with it that I needed to fix but that basically sealed the deal that I wouldn't ride it until I fixed them.  Anyways, I was taking a look at the gears yesterday and how they were shifting (since they were the reason for my fall) and I realized that because of the fall, my whole back wheel is now warped!  It still rides but I can't imagine it would be that safe to do a ride of any real distance on it.  That combined with a need for new brake cables, new handlebar tape, a loose brake handle, etc etc and now I am wondering if it will even be worth it to fix.

The reason I bought an older bike originally was because I wanted something to get around on but didn't want to spend 700-800 for a new road bike just in case I didn't actually end up riding that much.  I have since discovered that I love riding places though, and now I need to consider whether it's worth putting money into an older $250 bike or just selling it as is and getting a newer and lighter bike.  I guess i will see exactly what the quote is for everything including the new wheel.  Any thoughts from more experienced/knowledgable riders?