If you were to shoot nitro-for-black loads with jacketed bullets in that rifle, it is likely that the bores would improve somewhat after a hundred rounds or so. Henry rifling likes jacketed bullets in my experience, very useful 440 grainers are available in my neck of the woods from Woodleigh and Bertram.

If it were mine, I would simply tidy up the front sight, maybe by splicing in a new dovetail, and have a fat time trying to wear the rifle out completely!