Subaru Outback no oil/blown engine

I kept having trouble with the lights coming on on the dash. First, check
engine would come on with cruise control. Then tire air pressure would come
on and sometimes one was a little low but not always. Then the airbag light
would randomly come on. I had it in to the mechanic over and over and they
finally (?) fixed it. A few days ago, the check engine and cruise control
started coming on randomly again. I'd turn off the car, come back and start it
and the lights wouldn't be on. Then, later, they'd come back on again. I drove
120 mi to my parents house and as I was trying to pass a car, there was a
loud revving sound (like it was trying to go to the next gear to pass) then a
loud POP and then all of the lights came up on the dash and the car wouldn't
start. Luckily, I was able to pull over and have friends help me get the car to
a (new) mechanic. He called me yesterday and told me my engine was
completely dry (there was no oil at all) and I had blown up my engine. Cost
to put a remanufactured one in with labor is over $5,000. I've looked at
Subaru chat line and it appears this isn't completely unusual. I had no
warning whatsoever that my oil was low. Mechanic said I was abt 1700 mi
past the date to change oil but also said it wasn't enough miles over to cause
this sort of thing to happen. Here's my main question. If I get the engine
replaced, am I still going to have problems with the electronic part of the car
not operating right? Should I replace the engine? Mileage is low for a 2007
(97000)