You’ll find two camps in the old boat world- one that insists that because boats were built to be used they should be maintained (which includes “restored” in all the various meanings of the word), and one that believes in keeping old boats completely original. But many people pitch their tents somewhere in between.
Your Old Town canoe was built to be used, it was used, and it still can be used, but it should be used with proper maintenance. Water and time are the enemies of canvas and wood, so to use a canoe without great fear of it slowly rotting in front of your eyes, wood must be re-varnished (or painted) and canvas must periodically be replaced. As others have said here and before, canvas does not last forever, and once you start to see deep crazing, it is near the end of its useful life.
On the other hand, some people truly cherish their old canoes, not as users, but as family heirlooms and/or wonderful reminders of the past. Hardcore “boats are meant to be used” types have suggested (sometimes flatly stated) that the only determinant of a canoe’s worth is its capacity for use. Clearly this is not true; otherwise, institutions like the Antique Boat Museum would not exist. It would be a tragedy, in my opinion, to restore some fantastically well-preserved and very rare canoes that are out there today (see the recent thread here and the Wooden Canoe article about the old Gerrish, for example). Furthermore, it is a logical conclusion that with every old boat restored or otherwise altered, original ones become more and more scarce, and presumably this will eventually translate into increased value of the rare unrestored ones.
That said, Old Town canoes are among the most numerous out there. You would think that, with the advent of the internet and the successful history of the WCHA, original canoes would be getting very hard to find by now. They are still out there, as your experience shows, and Old Towns are found frequently, sometimes in truly pristine condition. Thus, it certainly wouldn’t be a crime to re-canvas your canoe.
Bottom line? You should do what feels right for you. Old wood-canvas canoes, even in very bad outward condition, can be restored to spectacular beauty- just see many photos posted on this site for examples. By restoring yours, you’ll gain a much greater appreciation for what went into the construction of these wonderful little craft, and you’ll have a product that you can be proud of as you use it for many years to come. If you don’t want to alter the canoe with fresh canvas and varnish, however, you’d be best to keep it out of the water. The rate of decay goes up exponentially over time. But if having it out of the water as a nostalgic reminder of the past is what floats your boat, don’t let anyone talk you out of putting it on a pedestal and enjoying it. It is your canoe, after all. Do what feels good.
[see attached photos for two examples: an unrestored E.M. White- not a rare make, but a rare and pristine original example- and an Old Town that deserved restoration and, I believe, wears its restoration well]
Michael