The constant vertical bars is not good and the messed up menu just on normal screen is not great either. I would have to pull it apart to say what goes as it could be a whole bunch of things from the digital boards to the decoders to the edge connectors inside the thing -- if I could poke, prod and freeze it I could tell more but the TV is not on my workbench so I am limited to everything it could be. I would be very surprised if it was just a couple of capacitors or a loose connector or something as basic as those, in some cases it could be a simple board swap but that is not a fun path to head down if you are not otherwise versed in TVs.
Does it do it from powering on or only after it had been on for a while? Did it suddenly appear or has it had a few odd things happen before this?
If they are willing to fix/replace it for $400 max then go with that, however that would be a foolish bet for them to make as it could cost them an awful lot more (even if they have the parts to supply at cost) and a quick scan of amazon says there are other large TVs if you want them -- 3d has died again (come back either in 20 years when they want to try once more, or about 7 years if the heads up display thing takes off) and do you actually have content that can make use of that crazy a refresh rate?