Absolutely! It's a perfect candidate! No issues with the "purist" crowd, and it sounds like the car is a pretty solid base to start with...
Some questions you will need to answer BEFORE you head down the road of bringing your first gen into the 21st century...
1) LSx power! you will need to find a good source for the engine, ECM and accessories. (ebay search "LS2 engines" and go from there.. you will see links to all sorts of LSx engine combos. from there you can start figuring out which way to go)
2) Suspension upgrades. I suggest going the "kit" route. (Hotchkis, etc). It makes for ease of install and the parts are designed to work together.
3) four wheel disc BIG brakes. (again, go the kit route. sure beats piece-mealing it together)
4) Big wheels and tires. Kinda like women choosing shoes... the right ones just make the package look good!!
5) Join/ search other great websites like pro-touring.com and lateral-g.net, as well as ls1tech.com. those guys have "been-there, done-that" and you can gain mucho info!
these are just some of the techniques I started out using when embarking on my quest for my dream car! I am sure others will chime in and it will generate more discussion/ suggestion.
Good luck on you quest for the ultimate in coolness... just like the forum thread says, "Todays performance with classic style"...
I still get a kick out of the " OO's and AH's" when I go to the Chevy dealer and they see an LSx under the hood!