I have mixed feelings about whether to restore it and I can think of good arguments for both sides.
Personally, I would find it hard to resist making it work. It was designed as something to be used, after all, not a museum piece.
I would soothe my conscience by doing nothing invasive, restuffing paper caps as well as electrolytics, maybe even finding resistors that look more period-correct. Ideally, when it was done, it would look the same (at least to a casual eye) but WORK as the designers intended.
Just my $0.02.
Phil Nelson
Phil's Old Radios
http://antiqueradio.org/index.html