Tuff call, Shrom. I know, as when I had it, I wondered the same thing. you see where I recleared the spot on the transom where the original gel clear came off in a large area... I cleared it, wetsanded well around it and buffed it out. looks much better than before. the problem you have there (and many others I'm sure) is that the clear is cracking and peeling in different areas to different degrees. it's one of those things... how far do you go? if you lightly sand and reclear, the cracks and splits in the gel clear will resurface quickly. if you do an aggressive sand and clear to get thru the cracked clear, you will sand alot of the color off of the flake, and to different degrees in different areas, really affecting the overall color. you also have areas where the clear has lifted in bubbles and larger areas creating a haze under it which appears white. also some clear stress crack spider webbing.
I will share my thoughts from when I had it, while I was considering keeping it longterm... I pretty much decided to live with it for a while (like you said, it does shine up nicely since it was buffed, especially from a few feet back), and decided that when I was ready to really start bringing the boat back cosmetically, I would sand thru all the gel clear, eliminating the stress spider webs and all the lifting areas (eliminating future problems), re-flake it (not as hard as it sounds) and put a few coats of clear over that, so I could wetsand it down and buff it to a perfect finish. if you use the right products and some flex agent, along with good prep, it would be a beautiful finish that will last, and alot more time than expense.
I know you have a few other projects in mind with this one, and it is very presentable as-is. really a sharp boat. I would think about enjoying it another year or two, then going at the finish. I would be happy to help, and have access to spray booths to do it in. heck, I'll show you how to spray and let you do it yourself if you like! just something to think about.
is it summertime yet? man I miss the water...