What would you do ?

[grinder]

Hi everyone. I have this nice blue Atlanta that I have been riding for the last 8 years. I know it is not the top end Serotta but it fits me great and the frame is in great shape. The problem is that some of the Ultegra components have started to show a little rust. Mainly the brakes and screws in the front and rear derailleurs. I would like to upgrade the whole thing to Ultegra 10 speed. My LBS (who has a great mechanic) has told me the price would be about 1200 (includes a wheel). Am I crazy to invest this kind of money in this bike? I am thinking for a little more I could get something new or should I simply replace the brakes and keep using it. It makes me want to puke everytime I see rust on my Serotta. Thanks for any advice.