Originally Posted by RobbieTunes

Going simply by the Schwinn catalog:
1-weight
2-aero
3-climbing due to gear inches
4-handling

Going by my experience:
1-weight is a wash: less wheel, more frame and chainring, sorta.
2-aero? me? hah hah.
3-climbing-yes. Drop the chain to the 42 and up to the 26, with those 650c wheels, you can climb. As offered by OP, very good climber (39t front).
4-handling-yes. Amazingly nimble and precise. As I have 2 650c tri-bikes and 1 700/650c TT bike, they turn on a dime.
5-Great tires are harder to come by, but they're out there, rarely on sale.
6-Great rims (C&V) are harder to come by, but they're generally cheaper, especially Mavic Ksyriums.

I'd love to have mine back.
It was 9-sp 105 and Tange OS (the fork, per the Tange rep at NAHBS, was Tange Prestige)
It gave up nothing to my '87 Waterford-built Paramount with SLX and 9-sp DA.

If you want a very unique paint job, a nice Tange OS frame, and the potential to have a great-handling climber, the OP's bike is the one. With "normal" 53/39 chainrings and 650c, you can toss on a 12-28 rear and climb all day. You'll do your share of spinning, though, with a 650c wheel and 53t front ring. It still works for lots of triathletes, though.