It looks like the previous owner had this set up as a time-trial bike. Quite understandable as I see the "tubing" is areodynamic. The riding position the frame geometry offers will always have you aggressively forward due to the steep seat tube angle. If that suits your riding style, fantastic. If it doesn't, you may never find this bike comfortable on longer rides.

To get the gearing more suitable to the steep hills where you live (I spent 3 years living in the area, quite some time ago), you'd either need really big gears on your cassette, or you will have to change out your crankset, or find some adapter (not sure if that would be suitable for this bike).

Drop bars would certainly help if you're not using this for time-trials, but only if the geometry works for you. Also, you seem quite locked in with wheel and tire size.