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@PhilPub
From my experience of updating my old steel frame by putting a modern group on it, the two main improvements I saw were (a) far superior braking performance and (b) smoother, crisp gear changing, not to mention the convenience of bar shifting and 20+ gears to play with.
Each to their own, and if someone feels that it's somehow only right to match frame and components of a certain era, or even country of origin (although you really start losing me there!), fair enough, but w.r.t. sticking a modern group on it and enjoying it, as boggy says, no reason not to.