I will say from experience that going up to an 11T sprocket up front (if it doesnt already have one), 80 polini kit, 14:12 or 14:14 carb and the pipe of your choice will result in a suuuuper fun bike. Even with the stock clutch and ignition. But I'm an old man who's happier with a reliable low-to-mid-40s bike with good acceleration and killer gas mileage than a 50+ mph bike thats super loud and sucks ass to ride around town.
I'd really recommend just starting with the polini (essential!) and a pipe and see how you like it. You might honestly stop there once you ride it. Cannot recommend that setup enough. Definitely rebuild the bottom end though. I've had several V1s over the years and they almost all actually desperately needed a rebuild, an in some cases the crank would have a shitload of endplay. Good engines but they seem to usually be destroyed when I find them.
hmm, what else...oh yeah, clean and loctite the sprocket nut if you do re-gear or take it off for the rebuild. I used to have them slip off periodically. Not the best sprocket retention design.
Also if you stick with points, get a new condensor. No matter what. I've had a 50/50 experience with CEV condensors being good still, and even when they are they tend to blow not long after I start riding the bike regularly. That's good practice with any moped though.
Are the forks damaged? I'd try riding it with them before swapping them out. They work under the same principal as Honda Cub forks which have a VERY forgiving ride quality to them compared to a lot of cheap telescopic moped forks. I only had a Blanco once, briefly, but didn't really find myself wanting a new front end on it.
This is all personal preference stuff really, but the City Bike in my profile is probably my favorite moped I've ever put together so I'm clearly biased...and yeah, it's totally stock other than the cylinder and pipe and a slight re-gear...and the significantly lighter wheels I built (this helped with acceleration too)
Good luck man, It's gonna be cool.