After a week of her anti-inflammatory meds, Sadie really showed no change in her limping/use of leg. I have done a fair amount of research online and found it very interesting. Most of the sites sing the praises of the TPLO surgery, but then I found that they were all surgeon's websites. I found another with a different perspective, here.
Long story short, I feel that we should not rush into the surgery that the vet is recommending. Not only is it expensive, but it is VERY invasive (cutting away bone, and inserting plate and screws) and has some pretty scary risks associated with it like bone infection, bone fractures and cancer due to the metal.

We've not really restricted Sadie at all since the injury, and even tried to encourage her to exercise. However, we are now going to try 8 weeks of extreme restriction - no running, jumping, quick spinning, tugging, etc. and see if that will help. If it looks like she can build up some scar tissue to support the leg, then we may not need the surgery. If nothing has improved, we'll look into it.
Another thing is that there is a brand-spanking new surgery option called TightRope CCL which I would MUCH rather have for Sadie. But it just came out in July 2008 (last month) and waiting 8 weeks might help it to be a little more available.
Plus, we are needing to be away from her for a week at Thanksgiving and I can't think of any easy way for somebody else to give her the very specific and careful care she would need post-surgery.
I haven't talked to the vet yet, as he's on vacation. We'll let him know on Tuesday what our ideas are and see what he thinks.