One thing that should also be taken into account when considering replication is that comes with a greater management overhead than log shipping.
Log shipping is far easier to set up and once it's running it generally requires very little intervetion whereas replication needs a closer eye. Problems are also easier to troubleshoot with log shipping.
In addition, with replication you need to worry about performance because replication will place more overhead on your publisher and you might need to consider using a seperate server for your distributor (depends on transaction throughput and various other factors).
With log shipping, you're going to be backing up your logs anyway so there's isn't a big performance hit - network will be a little more saturated but hopefully you're copying logs through a local network that won't affect the network on which clients come in.
These reasons, along with the reasons you already mentioned, mean that I would consider log shipping first for failover.