Hi,
Yes, unfortunately, SCSI drives are often expensive.
You mentioned an external SCSI drive. Would it be correct to assume that the external enclosure is OK, whereas the hard drive inside is not working? Any chance of locating another SCSI drive to be placed in the enclosure? Sometimes older hard drives suffer from "stiction". If so, knocking on or swinging the drive may lead to a change. One could even open a faulty drive in a last attempt to recover files (information about manually assisting non-working actuator arms etc can be found on the Internet).
Alternatively, if you can find a PowerBook with SCSI Disk Mode support (such as PowerBook 160/165/180/180c or 520/520c/540/540c), that computer could be used as an external hard disk:
https://manuals.info.apple.com/en_US/0302674APB160180UG.pdf (page 230)
https://manuals.info.apple.com/en_US/PowerBook_500series_UserGuide.pdf (page 31)
Today, I carried out an experiment with a PowerBook 540 (normally, running System 7.5.3) connected to a 4 MB RAM Macintosh Plus. After having deactivated the 7.5.3 system, a System 6.0.3 system folder was copied to the PB 540 hard disk (System 6.0.3 is merely an example; other versions possible). All devices were then switched off in order to allow the SCSI cables to be connected. Since termination power can be a problem in a similar setup, an external Apple CD-ROM drive (without a CD) was made part of the SCSI chain for this experiment (may otherwise not be necessary, depending on computers, cables and terminator types involved). The special 30-pin HDI-30 adapter forces the PowerBook into SCSI Disk Mode when powered on.
When the Macintosh Plus was switched on (no floppy in the floppy drive), it then booted to System 6.0.3. The entire PB 540 hard disk was visible at the Plus.
It is important to have access to an appropriate startup floppy, such as the Network Access Disk 7.5 (http://download.info.apple.com/Apple_Support_Area/Apple_Software_Updates/English -North_American/Macintosh/Utilities/Network_Access_Disk_7.5.sea.bin), in order to be able to regain control over the PowerBook (that is, reactivate the normal system on the hard disk) after a test like this; a PB 540 cannot boot to System 6.0.3.