If my experience is any help . . .
I had a mixup in traffic with my 1300 Honda VTX and the damage was similar to what this Glide had. Fork was twisted and pushed back into the tank, scraped controls, etc. The bike was still rideable.
The insurance company performed a full inspection and what it came down to was a complete stripping of the bike so the frame could be inspected, with restraightening on a frame machine and repainting as necessary, and reassembly with new parts. This bike was still rideable, but their explanation was valid: They would be liable for any repairs.
The net effect was the VTX was totalled. I received just over $9,000 in settlement and had the opportunity to buy the bike back, in its damaged condition, for $2,700. I took the total loss settlement.
What you are looking at is a bike that is a total loss, probably what the industry calls a 'constructive total loss' as it would cost more to repair than its value would be after repair. The owner takes his settlement and walks away, and the insurance company deals with the remains.
The title will show 'salvage'. This is not a problem if all the repairs are done to fully repair the bike and you intend to ride it 'til the wheels fall off. A frame check/align and new bearings would be the most critical as the rest are essentially bolt-on pieces. Resale would be more difficult and you would take a price hit.
Personally, I would save a bit more and go for an '09 for all the reasons stated above. I bought my Dyna with the insurance proceeds and have no complaints, but it will be replaced (if and when the stock market rebounds) with a tourer.
Good luck.