Thanks for showing us your XL project. There's nothing wrong with the layout of your thread.
If you choose to, you can throw the lights and signals back on a later date, and obtain regi from ICBC. I've done it several times, and it adds considerable value to the bike. It doesn't have to be a restoration to claim the regi; only functional.
I bought a small supermoto front fender for my Lifan that would be perfect on that XL80, and it was only about $6.00.
http://item.taobao.com/item.htm?id=2979100123
I built a custom muffler for my old XL250S that was pretty simple; perhaps you could make something similar work. Read about it here:
http://www.chinariders.net/showthread.php?t=10096
If you really get silly in the future, you could bolt in a 200cc China motor.