In my mind, it seems the way to do it is to disassemble everything, and refurb/refinish pieces as they come off. Finally ending with the frame, with a bunch of refurbed / refinished parts to put back on it after the frame gets blasted and coated (paint or powder).
Have you done this before with a motorcycle (100% tear down and restore). It can take years to finish a project like that, and many many folks never make it to the end before losing interest. It seems like it's already been in your hands for a few years, as you mention.
Personally, I would focus on the basic mechanical function and safety components, and then ride it. If you really love it, go all out. If not, you have a good ready to ride bike that should be easy to sell. If the first thing you do it create a giant mount of parts, it's a ton of time and work to get out of the project. Even parting it out is a ton of work. It's much easier to sell a fully assembled bike.
I've never been hung up looks. I focus on function. As you already have done, I have repainted many rusty battery boxes. And you already started on the carbs.
Assuming you think the engine internals are not damaged, I would do a valve adjustment and call the engine done for now. 19k is low for these engines. My Z1R has 45k miles on it and runs great.
I would focus on the following:
* steering head bearings
* swing arm bearings
* front brake system
* rear brake system
* tires
* carbs
* valve adjustment
* timing check
The only other thing I'd look at is to check the wiring harness for obvious damage or hacking/modifications, just to make sure there aren't any real obvious issues.
When that's done just ride it, warts and all, and see if it's a keeper.