I got fed up with my Craftsman TS a long time ago. It was a similar to yours, I believe. Ultimately, I wanted more power and went for a Griz 1023 3HP. very happy I did. The fence on it is quite good.
Looking at refurbishing is always a good idea. A couple of things to consider, though. Foremost is what motor does it have. I wouldn't put in a more powerful motor so that kind of limits you. Also, what kind of belt does it have. My CMan had just a single belt. Prone to slipping. There are some good aftermarket upgrades for that. A new fence makes a lot of sense. I considered getting an Incra because the one on my router table is awesome. However, it takes a LOT of extra space which I ultimately decided I didn't want to take up with a fence. Also, my CMan had a weird splitter while my new griz has a riving knife. I would get lots of binding with the CMan, none with the griz with the riving knife installed. I would definitely look to add one if you don't already have. A few other mundane things can improve your TS - clean and sharpen the blade, narrow kerf blade (takes less power), clean and wax the table top.
Unless you can't afford it, I would say get a more powerful saw. It really makes a difference. The one I got costs 1500 now
(Griz 1023). Maybe a used 3HP would work.