I'm not a huge cruiser fan, but that is one classy-looking bike!

I'd go with what you've described - but definitely change the seat and pedals first. I have recently found out furst hand that an oxalic acid solution does wonders to remove surface rust. Ckean her up, wax her, ride her around for at least a year before you entertain any thought of repainting her. I think it would look amazing if completely restored, but that's a big step that one can't retract.

Enjoy.

Z