For that amount of money, I'd find a some good used fenders, nose panel, hood, and strip the whole car of all the trim, remove the windows and most of the interior and get a sweet complete car paint job. If you plan on getting the front end repainted, be advised that you can always tell a repaint on a car, it won't match the rest of the body, you can always see it in the light. With that type of money that insurance is giving you, you can get it done right. I would bet you would even have left over money to buy all new trim, window gaskets, etc.
It's time to make lemonade out of lemons. Been there, done that and insurance gave me $3K 10 years ago when my former 02 was rear ended. I stripped my car of all trim, windows, bumpers, lights, etc.. prior to having it repainted for $1.2K, had the body damage fixed prior to paint for $500 (I had an 02 parts car that I canabalized for parts) and used the remainder for new gaskets, trim molding, etc... I broke even, that was ten years ago but you can still save a group of money by stripping the car yourself of all trim, windows, molding, lights, bumpers, etc.. before it goes to the body shop. Just my 02 cents worth. Remember you can use the body shop of your choice, ask this list or members of the local bmwcca for recommendations. Let us know how it turns out.
I'd remove the engine and repaint the engine bay the body color, but that's what I would do if it were my car.
G-Man