Based on what you describe as your intended use I would do the following.

- Replace hoods with cane=creek diacompe type hoods

- add fenders

- new koolstop brake pads

If after that you are unhappy with the braking perfomance you could upgrade the cantilevers.

to stay vintage I'd go with the old deore XT for looks and function

to pure function and good looks the new tektros that looks like the XT are awesome, super adjustable and you can use a cartridge type pad... lovely... finally a new cantilever that is better.