'Horns are good for me because I almost never use the drops. On my roadie, I'm always riding the hoods or tops. That + style / cheap bars to do it with = no-brainer.

Sheldon brown and others have a one pc crank converter that'll allow you to convert to modern bb's. Under $20, I think. It'll cost you abt $100 for the parts to switch it completely, probably less. I'd also get a modern wheelset. Watch CL in your area, or Ebay. I landed a NICE tubular / Suntour set with new tires for $50. Patience and constant eyeballing the 'net will get you what you need.

Nice bike. I have a deep, newly found respect for most Schwinn's.