tly,
You're right--pretty expensive (I believe just under 2,000). I've had to do it. Same symptoms. I do very little brush hog (5') but lots of 7' finish mower. I usually (slowly) engage/disengage mower in mid-rpm range, but perhaps that's still too much strain on the mechinism.
Since I rely on the tractor for home and some business, I had mine done after about a year of putting up with the PTO always turning. My dealer said it was just a matter of time until it failed.
JINMAN is probably right on with his assessment.