You've got a lot of great info here. While $3500 is no bargain, it is the start of spring, and I wouldn't be too worried about the miles. The R65 can stack on miles like the rest of em... and at least you know this machine hasn't been sitting still for 15 years while everything dries up and corrodes in place. Plus, you can offset the cost by selling the ATE calipers. The peace of mind you get buying from somebody you know and trust can justify a few bucks on the price tag as well.
btw, if you keep shopping around '81 can be a bad year for the R65 as BMW used crappy materials in the valve seats.
While the LS does tend to cost a bit more, you do get the unique wheels. The front rim is wider, the rear drum is bigger, and I'm pretty sure they are both lighter and stronger. The wheels are much easier to clean, too, if you're into keeping things shiny. I also never get any high speed wobbles that some airhead folks talk about... maybe the "30% less lift" from the front fairing and the bigger contact patch actually do something?
Regardless, the best reason to get an LS is if you like the LS. Mine fell into my lap, but if I had to do it again I'd go for another. I like oddball, uncommon stuff. I like the styling (Hans Muth also designed the R90S and the Suzuki Katana), I like that the only other two I've seen have been at motorcycle shows, and I like that it seems to strike up friendly conversations with complete strangers. I'm willing to pay in that luggage is harder to fit and some of the LS parts are NLA.
P.S. Don't be to wind the engine out; they like to rev. It's gonna vibrate
like you read about around 5K and then smooth out again. Makes for a smooth 75-80mph in 5th gear.
P.P.S. Mine cost $600 and had 5300 miles on it
