Coming from a different angle than the other answers...
You obviously have a long relationship to your bike.
I assume, the main aim behind new/modern wheels and even fitting 11-speed components on an 80s bike is to ride it more (seriously), but keep in mind that especially "phase 2" fitting an 11-speed group set will be relatively expensive upgrade in relation to the age and value of the bike, even though bike parts are mostly interchangeable between generations of bike frames and it is probably doable with enough resource and effort put into the project.
This means, you invest serious money in a bike that doesn't have much more than sentimental value (for you, personally). 11-speed will increase your gear range but depending on your mechanical abilities and the chances of sourcing a cheap used group set for no money, your project might get into the cost realms of a new entry-level bike but you stick with some limitations such as geometry, compliance and the weight of an old steel frame, ...
I'm don't know where you are based, but chains like Decathlon are selling decent entry-level bikes for ~400 $/€/pounds and they are probably a better platform, not necessarily for later upgrades but for getting more into riding. I personally would go for something more advanced for my second or a "serious riding" bike, just as an example to put things into perspective.
There are some concerns raised about the frame's condition in another post and given your odd handlebar position, I'm not sure if the frame is even a good fit for you. In my opinion, drop bar bikes should be set up in a way that you can ride all hand positions on the bars, even though you might prefer one over the other, depending on your riding style. However, constantly riding in the drops still seems a bit odd to me, especially if you can't even use the hood position because you'd fall off your bike^^.