If you get rid of the brake levers, change the pads, and replace the brake cable, it'll make a world of difference.
I use salmon
Eagle 2 threaded studs for pads, and I like these
levers though I have the cheaper Nashbar version. The caveat is that for the pads, you'll have to cut the studs shorter so that it doesn't smash into the handlebar post when folded. Also the levers need to be shimmed on the B. handlebars because the handlebars are skinny. I shimmed with electrical tape because it was the first thing I saw. All in all it is a worthwhile upgrade, and has passed the hills in Berkeley test with aplomb.