Update.
The bud I got the lathe from stopped by today to drop off some stuff for it. The T handle for the chuck, a few wrenches that fit various stuff, and a live center. He also handed over money to replace the broken gear. That told me a couple things. First, he isn't planning to give his lathe away any time soon, and second, the old Atlas will be back to it's old form before long. I will source a replacement and then maybe tinker on the broken one and see if it will do as a backup part.
So while I had hoped he would let it go for a decent price that isn't gonna happen, but he won't be coming for it any time soon either. I know he has no room for it and after he saw how much better it looks thanks to my de-rusting efforts he is happy to leave it with me indefinitely.
Yours,
-Spike