It's not that the components are bad, it's just that they are very low end; and won't stand up to much off roading, and putting on the 'best 80mm XC fork you could imagine' would cost several times the value of the complete bike. The frame will be heavy as well.
80mm is on the limit now for XC, with 100mm now been the shortest you would want to use, and although you love Chromoly steel as a material, it isn't the best for XC, you need Carbon Fiber for that now, steel has a place, where you need strenght, and can sacrifice weight for it. but that is really in the mid-lower end hardtail AM area, not XC.
If you want a steel XC frame, would be looking for new hand built / used good condition 2008 or newer frame, with disc mounts, although by this time, most major manufactures had gone alu, or if you can find one, say a 2011 Salsa Ala Carte. whatever you look at, it won't be cheap.