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Thank you for the inspiration! Honestly if I had the tools and the space I might try and get this done myself. It's a shame as I do share your mentality about new skills saving money in the long run but I have also reached a point in life where I realise I just can't be capable of everything. It's the "Do a good job" part which is the real spanner in the works...excuse the pun.
user115516
Do it. Learn how to fix up a bike on this. Even if it does not become your main squeeze you will learn enough that you will make good decisions when you elsewhere which will save you a ton of cash. In my experience fixing up my old Raleigh was great. The Peugeot still looks great you can respray white and get replacement graphics. The cogs, cranks etc are pitted but you will probably swap them out. Do a good job and you will love that bike for another 25 years!