Not sure what to do next

It's been a while since I introduced myself and Black Betty, my 1981 XJ650 Maxim. Thanks to many of the threads here, I was able to clean and rebuild the carbs and sort out all of the issues preventing her from running. Now, despite being cold blooded, she runs pretty darn well and can get me pretty much wherever I want to go. She doesn't need anything mechanical, although I'm sure she'd appreciate a top-end rebuild and fresh gaskets. However, the suspension is probably original and may have never been rebuilt (~22k miles). It feels a little squishy, but she's a "special cruiser", not a sport bike; maybe it's correct. I'm debating replacing the shocks with some 412s from Chacal and getting the performance front fork kit (~$500+) or living with suspension for now and cleaning up some of the patina in favor of new paint, etc.

What do you guys think? Looks or suspension?

 

Have you tried adjusting the rear shocks to a stiffer setting?

 

I'll have to give that a shot and see how it does!

 

Suspension is an investment. If you are going to put another 20k miles on it, I would do it. It's not about creating a comfy ride, it's about improving traction and handling, even for a cruiser.
For sure the stock suspension needs full rebuild due to age, and Progressive shocks (for their apparent sticker shock) are actually a pretty good budget option for a cruiser. True, high end racing suspension really cost a lot more. Keeping the stock setup up-front but refreshing the seals and springs in the forks and new oil will be good enough.

Full brake rebuild is also a good thing if you're looking for what's next. If you haven't replaced lines, rebuilt master cylinder and calipers, and especially new shoes, do that, even before the suspension.

I would recommend against opening the top end unless you are losing compression. The one thing these old bikes have going for them is their engines are bullet-proof. A valve clearance check and adjustment is always recommended (normal maintenance) but most won't have to open the engine up unless your chain guide fails.