I was reading your thread, PITA wiring check, 16" rear wheel check, swingarm bushings check, and I get down to your inspirations and there was my 79 XS650 Special II. Mine was the one with the yellow tank. It was a fun bike that I modified over several years. The goal was to make as light, and fun to ride as possible.
I used the wheels off of a xs650 standard to get my spoked rims in the sizes I wanted. Cost me about 50$ but took a little searching around to find. I had lots of homemade bits that looked fine from 20' away. I really wanted a brat style seat, and a 750 rephased motor with a Pamco, but it got to the point where I wanted to move onto something else so I sold it.
As part of the project, do yourself a favor and replace the clutch pullrod seal and the bushing as well as replace the 2 piece pushrod with a 1 piece from Mikes XS. It sucks to put all this work into a bike and have it start leaking incessantly.
I can't wait to see what you do with it. These are great old bikes because there is so much you can do with them.