Apple will not do anything for you, even if you are willing to pay them. An independent repair shop might, but the cost of doing this will likely exceed the cost of a new Time Capsule.......if you could find one.
Even if you replaced the hard drive, the power supply is still old and will fail in the near future, so it would make no sense to replace the hard drive unless you also replaced the power supply. That doubles the cost of repairs or more.
If it were me, I would place the Time Capsule in a vise and crush it as much as possible. Then, hit it with a hammer for another 10-12 swings.
If you don't have a vise, run over the Time Capsule with your car.
Your other option would be to take the Time Capsule to a store and trust them to recycle it if you don't want to do the manual work yourself.