Having some experience with such, I think your paint is a little too far gone to do a retouch job that you'll be happy with. And the bike is not rare or special enough to feel bad about destroying the original paint job. If it was mine, I'd get it powdercoated if I just wanted a nice looking bike to ride, or (first) get a full set of repro decals and (second) repaint it myself if I wanted to get very close to the original look.
The second route is a LOT more work, and if you've never done it before, you might not get very good results.
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● 1971 Grandis SL ● 1972 Lambert Grand Prix frankenbike ● 1972 Raleigh Super Course fixie ● 1973 Nishiki Semi-Pro ● 1979 Motobecane Grand Jubile ●1980 Apollo "Legnano" ● 1984 Peugeot Vagabond ● 1985 Shogun Prairie Breaker ● 1986 Merckx Super Corsa ● 1987 Schwinn Tempo ● 1988 Schwinn Voyageur ● 1989 Bottechia Team ADR replica ● 1990 Cannondale ST600 ● 1993 Technium RT600 ● 1996 Kona Lava Dome ●