I would leave it as it is, personally. New wheels with hub brakes, cream tyres and leather saddle/bar tape and it'd look great. To protect what's left of the paintwork you could use a couple of thin layers of linseed oil - the thin pale straw-coloured stuff that you get from artists' suppliers, rather than the thick orange stuff you get to protect wood - as it dries to a hard gummy satin finish and gives great protection against rust, and it won't damage the decals, either.
I love the Rudge symbol.
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