Pictures, Rob, so that we may help you.

You have nothing to lose.... I'd do it. It may take a long tim to root, however.

I would stick with it hoping the rot stops..try treating it with antibacterial powders or hydrogen peroxide if you scrape the rot off. If you cut the top,I doubt it would ever root. Those are hard to keep going once they go bad. Many a large one in soucal was lost due to rot.

I'm not sure how people use hydrogen peroxide for rot, but be cautious. H2O2 breaks down to H2O and O2, and as you already know, your plant has already had enough H2O. Maybe Stanofh will elaborate on its use.

You only need to use in a topical application. Plus,I would think the diluted H.P. sold at most drugstores is no danger to anything.

I did this with another Aloe specimen. Chopped the head of at a healthy place. Let it dry the whole winter and potted it up next spring. It worked and it has roots again .

Aloe dichotoma is very finicky. Its not like most Aloe's.

Redbeard can do whatever he decides of course. I'm just letting him know A.dichotoma is not an easy keep..or easy to recover from rot. A cutting could sit in a pot for a year..then collapse with not a single root grown.

I'm sure you know what you're doing, Stanofh, and I don't want to beat a dead horse, but that hydrogen peroxide in drug stores is diluted with water. I'm just making sure the OP doesn't inadvertently add more water to an already rotting plant by using hydrogen peroxide in a manner wherein water would cause harm.

Yes you can reroot, but it can take many, many, many months, 8, 10, 12. This is not a plant in a hurry. You have to support it very well so it won't fall over while it is rootless, or fall over and snap off the new roots it has grown. Lots of bright indirect light and dry mix. Watch for mealy bugs. Do not water until it has roots, and even then, be careful as this is an easy Aloe to rot.

I lost mine in early 2011 to a relatively lavish yearly rainfall total of 12".

I made the mistake of not building a wooden structure to support it for re-rooting. It was 6' tall and well over 100 lbs and would fall while I was waiting for roots...and then it got a severe case of mealybugs...today with more knowledge I would do better and probably have saved it.

You may be better off trying to save it as it is...investigate and see how far the rot has progressed.

Drug store hydrogen peroxide is 3%. Swimming pool hydrogen peroxide ("shock treatment") is 30% and can inflict burns to the skin.

And-remember-Hoovb was doing that in soucal,in sun with constant fresh air and lots of real unfiltered sunlight.

If I was in NJ? i go for treating the trunk rot..rather then surgery in October. Just my advice and its free..lol.so you know what they say..

Thank you everyone for all your comments and help. The base of the plant broke away and was completely rotted. I decided to cut high enough until there was no longer any evidence of 'rot' and allow to dry. Will keep you posted on the progress.

thank you again!