Agree with the above statements. If you are going to power sand, have a shop vac handy and wear at least a p2 rated dustmask, if not a respirator version with replaceable filters.
One of the forumites stripped back a ply body and got a really cool looking trans finish that played up the layering of the ply quite well, so some cool things can be done. I'll try and dig out that thread because it was an awesome effort.
You'd probably want to look at the neck and see how straight it is, and what sort of state your fretwork is in. They look like some pretty skinny frets, so it may be worthwhile to re-fret with jumbo and perhaps thin the neck down ('cause it looks pretty much a standard strat copy baseball bat from the pic).
GAS Anonymous meetings got put on hold because we're too busy building and playing.