Keith, I have that bike and have had it since new. I don't really see a single or a few tech questions, but a few ideas being thrown out.
1. Futzing - yes, I've done loads of futzing with the bike. I hated the original brakes because the cables gave it a very squishy feel, with poor brake response. My other bike at the time was (still is ) a Masi Gran Criterium with original Campy Record sidepulls. I felt the Campy were far better than the original Shimano 600/6205 in medium reach.
2. But, the reach was perfect for 27 x 1 1/4, and it worked for 700c when I replaced the wheels with the Atom Maillard Helicomatic system. Now I have Shimano 600 EX freewheel hubs, 700c CR18 rims with 32 mm true width. They fit very well with SKS 45 mm plastic fenders, I think Longboards. Takes some work to get the fenderline, but its worth it. I could barely imagine using a 35 mm or 38 mm tire, but in the rear it might work without fenders.
3. I replaced the original fork with a custom. The offset of the original is 52 mm (trail around 50 mm), which I found to flop and wander as I went uphill on 700 x 28c. I had it de-raked to about 43 mm (trail around 56 mm), which actually flopped worse but felt like a decent road bike. But I wanted a front load, so I found a local shop owner to build me a new fork with 64 mm offset (38 mm trail), equal ride height, and a wider fork crown. This could handle a motorcycle wheel, it seems, but gives a very nice ride and easy low-trail steering. I did not go all the way to 650b. The front fork has very long reach, but a left-over Mavic fits well. The rear brake is still the Shimano 600/6207, and amazingly it clears the big tire and the medium-big fender.
I don't have much experience with gravel riding, so I am not an expert on what you "need." I confess to not too much sympathy, since my gravel ride was 5 miles on a large fresh gravel, riding a really light Mondonico road bike on skinny 21 mm road tubulars. The tires survived, the bike survived, and I survived. Can a smoother ride improve quality? I guess so. But I have no idea how good it can get, nor any concept of what it means or feels like to have what I "need."
28 mm wide enough? Well I think yes, referring to my tubular ride. But that's a very dark-horse option for gravel riding.
Ken Freeman, Ann Arbor, MI USA.