So here's what I was thinking - what if I assembled a cockpit of my choice, using parts I like mounted on a stem and handlebars, complete with cables and housing. I could then effect a "quick change" between drop bars and flat bars. This should work because all the cable housing stops are slotted. The only issue is the rear derailleur cable. I would just have to solder the end so I wouldn't have to clip off the end cap each time I changed over.
I would use my 7 speed XC Pro thumbies so the shift spacing and response would remain the same, and that way I wouldn't have to replace the wheelset as well. Not great shifting performance, I know, but maybe that's part of the charm of C&V? I see alot of bikes here that use more archaic componentry than this one has, and that also probably see alot more miles than this one will....
I have no intention of ever getting rid of whatever parts come off this bike, just place them in a box labeled appropriately.

I just wrapped the bars today, and added an extra layer underneath along the tops of the flats using the 6 or so inches left over after the wrap. So I'll give that a go and see if its any better. The bars are only about an inch below the level of the saddle, the ramp that extends forward before turning downward are level, and the hoods are positioned high enough that the transition onto the hoods is level as well. I also wear gloves with padding in the palms. Since I converted to north road style bars on my commuter (that gets ridden far more than any other bike I own) my hands have been happier than they've been in a very long time. So I may just end up converting like mentioned above.

Thanks so much for your input , its very interesting to hear an insiders' perspective.