Certainly don't be chopping it up, Jon; either re-purpose or sell.
In my limited experience of them, Diana barrels do seem to be very, very good.
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The D35 is not rare, but yours is in better condition than most D35s I've come across.
On the other hand, the barrels are often in better shape than the rest of the gun, so no big loss to the world if you re-purpose.
Too many airguns!