Coming from a place where water is an issue I know a little about this. There are many potential solutions to water in a crawl space, but sump pumps aren't my favorite, until others have also been applied.
First some questions. Is this home in a flood zone or does the area have a very high water table? Are the downspouts tied into a proper drainage system and directing the water away from the house? Is there an appropriate vapor barrier in the crawlspace?
Unless the source of the water can be addressed, you'll be wasting your time putting bandages on the other issues. If the drainage issues can be resolved, then its a matter of how much work it will take to restore the termite and other damage. Without bringing a contractor down into the crawlspace to view the damage, no one can say what the best option would be. I'd suggest getting some professional eyes on the issue before you decide.... more