If you are having to pay £12 each for stem seals, then definitely check MB price for complete head gasket set. MB prices can be, not always, but can be, lower than expected, and genuine MB is a selling point if you decide to sell. Stem seals never used to cost £12 each - one tenth of that is what I expected.
Gutsing through oil is not a good sign. The rings I refer to are piston rings, hence a much bigger engine out job, where you will then be faced with difficult choices regarding rebore, crankshaft work, etc. At this point most would consider sourcing a decent secondhand engine. The 'wet' test described earlier should give an indication of ring wear as can a smell of petrol in the oil, probably at it's worst after cold start up - have a sniff with the filler cap removed. Even that isn't conclusive as HG could leak into oilways.
However a point to consider here is why the engine is suffering this type of wear (expect bore wear also - rebore and pistons required) at a low for that engine mileage. Has it been running without an air filter? If so, that could account for the bore/ring wear. Probably not though, in which case the bottom end might be a mess. How is the oil pressure?
If it's burning oil as you say, it may fail MOT. All of which is leading to a big decision. Rebuild this engine, source another, sell the car.
My advice here is go back to the start of this thread, re-read, conduct all the suggested tests, and when a diagnosis emerges, make your decision then.
On the plus side, that engine is a common fitment and probably a unit from a rusty W123 could be made to work, possibly even a 2.3.
Not what you wanted to hear, but there is little point in bolting a rebuilt head to a shot block - and burning oil suggests just that.