Keep it stock as long as you can. Someday you'll have one of the few non-modified Gen 1s and it'll be worth a fortune to a collector!
My 2 cents: I worked my way thru the gen 2 upgrade list for the most part. I was rebuilding a Gen 1 with 225K miles and only upgraded the parts that were shot - which was all of them. ? I use it as both a daily driver and expedition rig. I also tend to wheel alone and go places I probably shouldn't when solo so i want my rig to be as capable as possible because i'm too lazy to walk 50-100 miles back to a road. That said, given your intended use I agree with the earlier comments to do the front brakes and call it a day. Bone stock Gen 1s are more than capable for how you intend to use your rig. I'd drive it 'til something wears out. At that point if the part is upgradeable then go for it. In the meantime enjoy your rig and save your time and money.
In case you're wondering how much the upgrades will improve your rig. here is a list of mine and the reasons why for reference.
1. Front brakes. Stopping power for 33's and steep hills
2. Upper control arms. a bit more travel but mostly easier to maintain.
3. Torsion bars - heavy bumper and big winch (combined weight of over 220 lbs) aren't so great for the stock suspension and the rig feels front heavy. bigger tbars provide a much better ride and road feel by compensating for extra weight, not to mention a stiffer ride off road. WIth a stock bumper the stock t-bars were plenty.
4. SR rear end. I did this mod as much for the disc brakes and bigger trailing arms as for the locking diff. And the coils are nice for a bit more lift. I've only HAD to lock it up twice but it was worth having when i needed it.
5. Steering box. the tighter turning radius has come in handy - especially when i was trying to pick my way up a goat trail in a Baja canyon. <img src="/forums/images/graemlins/shiner.gif" alt="" />
6. Idler and Pitman arms - Required for the gen 2 steering box.
8. Seats. Comfort and arm rests, period.
HTH <img src="/forums/images/graemlins/cheers.gif" alt="" />