I say definately do it if you have a high quality lugged steel frame. The ride quality and asthetics of some of those frames are still way superior to the newer aluminium frames of today. If you're thinking of upgrading 7 sp aluminium I wouldn't bother.
The older 7 sp had a 126mm rear spacing compared to the 130mm of today. That's only 4mm. With a steel fame you can quite often spring them enough to fit a 130mm wheel/cassette combo. If you actually want to spread the rear triangle it's not that hard. Sheldon Brown's article explains how to do it.
http://sheldonbrown.com/frame-spacing.html Unless you have Suntour, upgrading groupos is not much of a problem. Most of the 7 sp front/rear derailleurs are easily workable with nine sp. STI. If you want more info on this do a search for some of Sheldon Brown's sites or ask on the rec.bicycle.tech newsgroup.
I plan on doing the exact same thing to my old Miele next winter. Upgrading a high quality classic frame is well worth the effort.