Replacement head is a good idea, but helicoils can work. I've done a couple -- recall one wanted to run back out when I removed the plug. Think that one just needed to be fixed back in place.
It might be worth trying to fix the current helicoil. After pulling the head cover, wouldn't it work to insert an old plug from the inside, then try to back out the helicoil? Or maybe that idea for reversing threading is just dumb....
Anyway, that head cover or another one, will want to resurface it before reinstalling. If it's warped a bit, you won't get a solid seal -- could give you operating problems. Think I would at least try resurfacing, using the existing gasket if its in decent shape. To resurface, move the mating surface of the head cover over a piece of wet/dry sandpaper (maybe 400 grit) on a hard surface. Some use a piece of glass. I use the top of my table saw. Use a figure 8 motion until all sufaces are equally shiny.
Clean up the cylinder with a shop rag and some 2-cycle oil -- look for any leavings from the last repair.