Dear Barbara,
I've just come back from seeing the Pope, so fraternal blessings to you, daughter!
I would keep the Crucifix in a box as a keepsake.
There are numerous miraculous shrines in Europe with old and tattered paper icons etc. where people receive many graces and favours.
The poor condition of the Crucifix doesn't take away from its symbolism and ability to inspire prayer.
St Alphonsus had an old scapular that he always wore.
Years after his death, the scapular is still on his remains, and has been declared "miraculous."
Alex