7 different responders, with 7 different opinions, none matching entirely. Of course, that's what will happen. Everyone has their own opinion of what is right.
Personally (which doesn't matter much to this conversation) I think tools are for using, and all my tools are old. I like them that way. I feel inspired by the craftsmen who used them before me. That being said, nothing in my shop is rusty and dysfunctional, unless it's waiting for me to get to it, and doesn't get used yet.
Collectors who keep their tools in as found, dysfunctional condition have always made me laugh. What's the point of owning a tool if you can't use it.
If that were mine, and I owned a bowling alley, I would use electrolysis to clean it up; I would paint it what I thought was a good color that I liked; I would change out the bearings and get it functioning properly; and then I would probably display it where the customers could see it and ask questions about it, unless I was going to put it back to work. Then, it would stay in whatever shop I had at the bowling alley.
It's yours. Do whatever you want with it. I doubt some collector is going to pay you big bucks for it, but who know's?? I watched a woodworking handplane that was a rusty piece of junk sell for $17,000 at auction once. I was so shocked I dropped my coffee down my pantleg.
Jeff