I have an '85 ST 400. I'm currently running tires that are nominally 700 x 35c but measure out to 32c. There's no problem with clearance. I think I could mount fenders there but I'm not going to. Personally I like a bit more clearance but I think I could do it.
You may not need to change the brakes. I'm running the original shimano 600 brakes and they work with 700c rims with the brake shoes adjusted all the way down.
I do like changing out the brake levers to aero ones for two reasons: (1) more leverage and (2) a quick release on the brake lever. With a quick release on the brake lever and the caliper, I can get a wheel with a 32c tire on and off without deflation.
I'm with the OP. I prefer 32c over 28c tires for long distance rides and tours.
If I were going to buy new 700c wheels, it would be tough to beat these wheels from velo mine:
https://www.velomine.com/index.php?m...9mj8oatlvgm0t4
Sun CR 18 rims 36 hole laced to sealed bearing hubs.
What's the point of a BF thread without pics, right?