Early 1960's GE In-Wall Oven - Wiring
I have an early 1960's GE In-Wall oven that has been working great for the 5 years I've lived in the home and presumably for 60+ years before then. It stopped working yesterday and after taking off the control panel to investigate it looks like it could be an easy fix. So, before giving up on this old work-horse and trading it in for a modern day appliance, I'd like to take a stab at reviving it.
Problem: After taking a peek behind the control panel, I found the wire going to the bake unit terminal of the infinite switch had burned off and become disconnected. As you can see from the pictures, the wire shows signs of overheating, and is completely disconnected from it's female spade connector. The GE infinite switch is located directly above the oven's exhaust, and the wire that burned off is closest in proximity to the exhaust. So, it is my assumption that this is what caused the wire to overheat and burn off. Does this assumption seem correct? Is there something else that could have happened? If this is what happened due to its proximity to the oven's exhaust, is it likely this happened from insufficient oven insulation? What would you do to prevent this from happening in the future?
Fix (from least to most expensive):
Option 1: I was thinking I could get some new 16 ga. stranded wire and some new female spade connectors and that I would just rewire the whole control panel while I am back there. Is there anything wrong with this proposed fix? Do ovens require a special kind of wire or connector or can I just use the standard wires and connectors available at Lowe's or Home Depot? Should I replace the oven's insulation while I am at it? I am pretty well versed in home repair, including electrical work, so I do not feel this is over my head. However, I have not done much with appliance repairs, which leads me to being open to option 2.
Option 2: Just hire a professional appliance repair person. It seems like this will certainly be a more expensive option, so if I can fix it myself, that'd be preferable. But if I am clearly overlooking something or out of my depth, maybe I should just take this route?
Option 3: This oven has lived a good long life. Perhaps it is time to put it out to pasture and buy a new oven? Definitely the most expensive option. And maybe not even the best option, considering appliances aren't built like they used to be?
I should also add, my wife is 9 months pregnant and we are about to be relying heavily on easy meals to just pop in the oven. So, time is of the essence!
See attached photos (including cool, original 1960's wiring diagram!) and ask any clarifying questions.
I appreciate any and all advice!