Your Pista for $200 was a reasonably good deal, and the parts sound like they're okay. Swapping out the bars (maybe stem, too?) and brake levers would make sense, because that's not so much an upgrade as it is adapting the bike to fit you and your needs. THAT makes sense. The All City/Formula sealed bearing hubs are fine hubs, and if they work and are in good shape you could continue using them for years without really giving up anything, performance-wise. I'm in the camp suggesting you save your money for something nicer that more specifically fits you and the kinds of riding you want to do.
FWIW, I had a Pista I bought new in late '99, the year they came in flat black with Celeste decals and Suzue Pro-Max sealed bearing hubs and some weird crankset that I have completely forgotten. I rode it for a season and sold it after deciding the bike's track-oriented geometry didn't work for me on the roads in South Carolina. For longer rides over varied surfaces, I have been much happier with 72-degree parallel frames rather than steeper geometry suitable for criteriums or velodromes.
I freely admit to being hopelessly retro in my outlook, but I would strongly suggest that if you go with dropped bars, seriously explore the classical drop-bar position recommended for decades for non-racing cyclists - top of the bars roughly level with the saddle height, the distance between the nose of the saddle and the back of the bar tops roughly the length of the forearm and hand with fingers extended.