As much as my tendency is toward perfection, a VIN would have to be either missing or seriously
up before I'd replace it. That one still looks pretty good, a little better than most. It's made from thick aluminum foil, so I'd work the deformed bits back into place, as much as possible, using a fingernail...then a dab of black Magic marker to touch-up the damaged black. All of the injury is tightly localized around the lower drive screw, so it's not going to be very noticeable.
IMHO, an original VIN just adds a little authenticity that a reproduction lacks. Only the original has the embossed (stamped from the reverse side) characters. Repops are usually engraved. I've seen some beautiful engraving work and most would never even notice the difference. But, this is one of those pieces where purist-originality is preferable. A slightly scarred VIN doesn't really hurt resale value of an otherwise 100-point resto. Plus, it saves you a few bucks.