Let me go ahead and rephrase my question. If your goal is to compete (for fun, not crazy competitively) and have a pet only, would you get a pup from this litter for free?
A quick disclaimer before I try to answer this very direct question: I'm still a newb, having done tons of research over the last several months, and finally just put down a deposit on a puppy from a well-bred litter. My answer is nothing more than my thought process and opinion that may or may not give you something to think about.
Regarding nothing more than your stated goal for the pup....I don't see any reason why you shouldn't take one. A nice pet, a warm companion, a dog that enjoys a fun, active life playing with IPO or agility or something, without expecting championship results....those can come from anywhere, including this litter.
HOWEVER...there does seem to be a fairly high risk for some health issues along the way. There's a good chance you might end up right where you were when you had to rehome the sire. So long as you take THAT risk into serious consideration and feel you are able to fully embrace it if it happens again
.....then, in my opinion....go for it.
Personally, I would not. I'm very gunshy about taking in a pup with chronic health issues. I accept the very small risk of that, knowing that there's never 100% certainty in any living creature...but I mitigate that risk as much as I can by choosing a puppy from a known, strong and healthy breeding.
Best of luck to you, whichever way you decide to go!