>>1951391>Deciding to keep my old bike
Not a good idea, however if you do>but a few things need to be improved.
Your bars are kind of in the right place for the geometry of your bike and you will notice the handling change the further you place them backwards. There is reasonable allowance for 20-30mm change, which is a moderate-large difference.
bars, shifters, and brake levers are all awful ergonomically.
I suggest you look to fit clamp-on downtube shifters.
And convert to a flat handlebar, with bar ends.
That will give you a more relaxed 'main' position, and a forward position for climbing out of the saddle with more leverage.
It also more importantly lets you run flat bar brake levers which will preform much better with your also all absolute shit rest of your brake system.
The other major upgrade you should do is to a decent aluminium seatpost. Remove your current one and it should have the width stamped on it. If it's a common size like 27.2 or 26.8 or 25.4 you should be able to find a nice (silver) used one.
They are far easier to adjust, far more comfortable, significantly lighter and look better.
I would also look to swap that seatpost binder bolt to an allen wrench sugino one, and if need be, file off the notch.
You should remove the kickstand and dynamo system.
Upgrade the brake calipers or at the very least, take them completely apart, clean/grease them, and upgrade the brake pads.
Replace the bottom bracket with a cartridge unit.