Welcome to the forum, you have come to the right place
I am a roadie newbie, having been a retro mtb'er since before we were retro.
First off, I doubt it needs a respray, I think with a good wash a bit of T-cut and a polish will make it look a lot better. The battle scars are to be cherished, as they add character.
Next, please don't consign it to the turbo, all that sweat and carbon dioxide is not good for the poor chap.
Last; I think the answer of what to do with it lies within; what would YOU like to do with the bike?
Personally, I'd probably complete the updates, but there are many here who would love to see you restore it to factory spec.
Most importantly you must RIDE IT. Even if only on happy days and holidays in summer, but it must be ridden, after all, that is what it was built for.