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Car works great (except new leak in windshield resevoir I haven't bothered to fix). Manual says replace at 105k miles which I'm 2 years away from at this point BUT also says replace at 7 years too. It has been 10 years. Should I replace now? Cost is 650-800 where I live. Should I go to dealership over local mechanics? Thanks.

 
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Yes, you should definitely have your timing belt replaced. Even though your Prelude's engine is a non-interference design (which means it will not be destroyed if the timing belt snaps), your day would definitely be ruined if this were to happen. Your car would stall and refuse to start. Go ahead and get your belt replaced because the material does tend to deteriorate over time. You might as well have your timing belt replaced at this time too while they're in there.