Not sure about the engine layout as not familiar with the XV but given the Subaru diesel plant is not the best I think the idea of a petrol conversion is a good one.
Not sure how a turbo failure means crank and bearing wear? I could understand if the blades disintegrated and went through the engine there would be damage though - How bad was the failure?
Before you give it to a garage for investigation why not get some of the oil and send it off for analysis - That will then tell you if you have any ring, crank / bearing wear. Its a relatively small cost before a garage starts pulling things apart.