I think it would function well as a utility bike or foul weather bike. I just fixed up a 10 speed world tourist and sold it for $65. It came to me totally rusted out and it took some work to get it nice and shiny. It wasn't my size so I road it a few blocks to check the brakes and shifters and that was about it. If I found one in my size I could find a use for it.
I assume you're aware of the positron front freewheel, and the difficulty in servicing the drivetrain?