Wild Willy--I used to be of the school that said, Hey, it's your rifle, do what you darn please with it. Back in the '60's I Bubba'd a couple myself--Both the Enfield and the '03A3 were cheap and plentiful, as was your k98.
Nowadays it's different. Firstly, as the man said, "They ain't makin' 'em no more." So if you have a pristine original, it oughta be left that way for the historical value if for no other reason. Once a drill touches it, POOF! its historical value to a collector is ruined forever.
Secondly, it costs about the same to buy a new Rem 700, all set up like you want, or a new Win 70, or similar Ruger or (best of all) Savage, as it would to have your k98 Bubba'd up to be the rifle of your dreams. Back in the day, the military actions were so much less expensive than now, and gunsmith work didn't cost an arm and a leg per hour.
Thirdly, if you want to do a "learning project" (a fine idea, IMHO) you can easily get a NON-pristine milsurp, or a commercial rifle of your choice, to work on, relatively cheaply at almost any gun show or LGS.
So--You asked for opinions. What you finally do is of course up to you, and still and all, it is YOUR rifle. I'd either keep it as a safe queen, or sell it to a collector who will prize it forever. But that's me.
Before you make any decision, I'd study up thoroughly on exactly what you have, and exactly what you need to do--or have done--to make it what you want. The study of the k98 is a whole sub-division of gun collecting all unto itself.
Good luck, and please keep us posted!