You can get white cotton bar tape to replace what's on there. Personally, if you're restoring it for us by its owner, why not stick with the gears he's used to? There's nothing "wrong" with friction shifting, it's just been left behind, that's all. If you can do a nice restoration using as many of the original parts as you can, it will be a lovely build. there's nothing to stop you offering to help with upgrades afterwards if he's interested, of course, but for the "This Is Your Life" moment when you wheel it out into the light and the owner goes all bleary-eyed, it should be as close to original spec as possible, I reckon. Also, if you're new to restoring bikes of this age, modifications will only complicate rebuilding what looks like a complete but tired bike. As for the chrome, like you say it depends on cost. Shame to replace anything other than cables, tyres and brake pads, in my opinion! It will look great, and the patina will be a sign of dignified old age.