Welcome GC:
For the small deflection you have, the age, and no further movement or leaks, I would not touch the wall. Monitor it to see if there is further movement down the road and consider the repairs then. As it is now, it may have been built that way in the begining and you may be opening a can of worms.
You seem to have a good handle on what to do about it. An alternative would be to set anchors in the outer wall of the excavation, put a whaler on the wall and pull it back with bolts (one each 3' at the mid height of the wall).
I wish the very best for you in this noble project.
Glenn
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