What should I do with this Z50R?

I picked this up years ago for $125. I had at least $1,000 worth of fun on it (think drunken shenanigans) before loaning it to a good friend so her kids could have their fun.
It's come full circle and is back in my garage.
In my mind, it's not worth restoring. It's a 1993 model and this thing has been ridden HARD and well used up. There's a messed up jet in the carb, the tires are bald, plastic is brittle, seat cover is ripped, rust, dents and dings everywhere, etc.
But it's a Honda and it runs.



A while back, I pulled this CT70 out of the junkyard...



...and did a thing with it.



I'm thinking about doing something similar with the Z50R. My thoughts are a slightly taller suspension to make it more "adult friendly", but I'd like to keep the balloon style tires, so XR80, etc., style suspension and skinny tires are out. I would like hydraulic forks and better brakes.
More power, obviously. The clone engines are cheap and dependable, but I've also seen a 4-speed conversion for these and maybe an 88cc kit. But a 125cc would probably be cheaper, stronger and easier. Though I do like the thought of keeping it Honda. Or not.
I wouldn't mind some lighting.

I would very much like to know how similar the frame is to the earlier models. Ideally, I'd like to change the bodywork to the earlier "monkey bike" style. Does anyone know if that's possible with this year/style Z50?

I saw one made up to look like a 60's flat track Harley Sprint a couple of years ago. I surely took a picture, but I can't find it. It looked something like this but retained the rear shocks.

That style of Z50r was my very first bike, I think mine was a '89 model. Kickass little bikes. I hope to find one for my boy when he's a bit older, he's just now getting his strider bike figured out, pedals are next.

I know nothing about modding these bikes but I'll certainly be watching as you figure it out.

As far as I can remember they are roughly the same frame as the later z50a in terms of overall geometry but the mounting points are different.

If you need some measurements I have 2 Z50a K1s and an 88 Z50r.

My vote would be longer swing arm, 140cc engine and USD forks sold for cheaper "pit bikes"

What motor is in that ct70??

Piranha 140.