If you don't use the points, will you sell them?
It looks like it's close to a tossup, depending on what you can get for AA miles.
65K @ .01 pp = $650 + $125 = $775
65K @ .013 pp = $845 + $125 = $970
If you're likely to use them for future travel, it may pay to save them because next time the flight might be more, so you'll be getting a higher value per point. But if you don't travel too often, I'd use the points.
(You can't get a better cash price? Going soon - instead of after yom tov?)