If you want to shine it up a bit, that paint will come around nicely with some rubbing & polishing compound. The paint seems to be in about the same condition my 59's was when I got it, and it's shined up pretty nicely. The rubbing compound will probably remove what's left of your decals though.
The "correct" Sturmey Archer shifter for this would be the "upside down" one, which may be a bit tough to find. I've heard that they were originally intended to be mounted under the left side of the handlebars rather than over the right side, but all old Raleigh catalogs I could find had the shifter in the more common place. The black plastic on the one that's on there should also come right off if you undo that screw, leaving you with plain chrome.
The 54 (and any '65 or earlier Sports) will have the "snap in" style double ended brake cables, too, which are absolutely impossible to find now, so you'll either have to get comfortable riding with the 60 year old set of cables that's on there now, or change your calipers.