I will be the dissenter...

You don't need to spend the money and you don't need new stuff...but new parts/bikes are fun!

You're on the right track. If you like the frame and and it is comfortable, don't worry too much about the weight and spend a few bucks making it better. I would start with the necessary repairs then invest in new wheels and improving your contact points. Good tires, saddle, and pedals...etc.

Then Campy 10 speed