Rotax have priced themselves out of rebuilding their 912 engines and haven't suffered particularly.
The advantages are, you sell the complete expired engine as a discount to a brand new engine and in the end, well, you have a brand new engine in your aircraft.
My neighbours rebuilt or exchanged (not sure which) their non turbo continental 520(?) in a Bonanza at a cost of $70 000 aud for the engine with all up costs running into the 90's, so just because it CAN be rebuilt, doesn't mean it is exceedingly cheaper to do so.
I'm unsure if there are insurance advantages with a new engine also verses rebuilt....
You would also assume higher reliability from a new engine.
There would have to be a higher risk factor with human and part error with rebuilt engines.
Companies do not need to set up extensive rebuilding facilities, trained staff and overhaul spares.
On the surface it seems costly not to rebuild but plenty of other items exist economically in our "throw away" society.
Even with cars, it is cheaper to replace with new than keep forking out for expensive mechanics and spare parts.
My employment in the mining industry has seen much change. No longer do you see maintenance workshops filled with lathes, drills an milling machines (and actual machinists). Equipment, pumps etc are not repaired but replaced.
eg. A pump runs for 5 years then fails. You go to the warehouse, book out a new one, install, and we're good to go for another 5...
Not all the time as some equipment is sent off to specialist repairers and obviously some stripped and parts replaced on site.
So overall the "economics" of replace over repair are increasingly viable. ... welcome to the 21st century.