Yeah, it's a sick feeling, for sure. If you aren't too squemish, I have saved aluminum heads with Helicoil inserts, but there's a couple of extra steps you need to take; one, turn the engine until the exhaust valve is beginning to open. Make darn sure it's not anywhere near the spark plug hole, as you'll catch it with the tap! Two, connect a continuous air supply (your air compressor) to that exhaust pipe's exit. I usually wrap the nozzle with a shop rag, then duct tape the whole mess to the back of the muffler. Once you're to this point, you should notice a fair amount of air exiting the damaged spark plug hole. Third, pack the flutes of the tap with a heavy-bodied grease (chassis grease works great). Tap, clean, and install Helicoil or Timesert as you normally would.
It's not as sure as pulling the head, but I figure that if it doesn't work, I'd have to pull the head anyway, so it's worth the gamble to me. I have done this successfully on both two- and four-stroke engines, with no dire consequences (yet). And, if you weren't before, using anti-seize on the plug threads will go a long way in avoiding this in the future. That, and a torque wrench... Redundant, I'm sure; but I have to say it.
As far as the Helicoil inserts, the only caveat I have for them is that sinking feeling when you break off the tab from the bottom of your freshly re-thrreaded hole, and you realize a magnet will not pull that same tab from out of your cylinder, due to the fact that it's stainless! Get a good grip with your best needle-nose pliers. Nathan