I also have a standard Xootr, though I added riser bars, an adjustable stem and a smaller chainring.

If you decide to go with drop handlebars I suggest you read this old but useful link. You will probably need to change your brake levers to ones with more travel or look at the other suggestions offered in the article.

alex wetmore's bicycle pages

Since this was written more drop bar brake levers that work with v-brakes may be available.

On my xootr I switched the grip shifter to a standard trigger shifter. I am pretty happy with it, but it is a bit larger than shimano's offering. You could do this or figure out where to place your existing shifter. Be careful since you cannot use Shimano shifters with Sram stuff.

https://www.walmart.com/ip/SRAM-X-4-...-Only/31976287

Lastly, before you make any purchases email Xootr and verify that the changes will work. I did and they responded quickly. It is a shame that they stopped selling this bicycle since they are really nice to deal with and I really like the bicycle.

Where I live is very hilly so I went really low with the gearing. Even if you are moving to a flat place there may be advantages of having 8 speeds over 1.

Good Luck,
Joseph