I had this same exact dilemma a few years ago when I restored an 81 G5. Lots of opinions on this topic for sure. I opted to stay with the stock setup (points, and separate regulator and rectifier) and I'm happy with that. I ride less than 5K a year, and that setup is rock solid, Plus, it's easier to trouble-shoot if a problem were to arise.
Charlie (Antietam Classic Cycle) was a great help to me during the restoration, so if you were to consider an upgrade to more modern components I'd take his advise on that.
My one advise would be to be sure you have good wiring. If that is bad, or has been tampered with over the years and is patched here and there, I'd get rid of that and either rebuild one or have one rebuild. Greg Bender at
http://www.thisoldtractor.com/for_sale_wiring_harness.html does nice reproductions and is worth the cost (doesn't seem like it at first) but you'll be glad you did.
Good luck.