A sharp engine is nice to have, but expensive to obtain with reliability.
My bike has three discs, so once you make sure they are all working, "better" pads are cheap enough for a little experiment.
The best money spent was optimising the suspension for *me*. Now with crap knees and hips, poorly back with a touch of spondylitis, that it still paying dividends. Forks are supple enough not to jar, but very controlled. The rears always feel a tad soft (or should that be plush?), but never get out of control. Its like the councils spent some money on roads.
Without stressing the mechanicals more, you can ride faster because you can maintain speed, more bends become sweepers - you just swoosh along.
Older bikes tend to have the suspension set too hard, because back then, damping was mostly rubbish - if not now then very soon.
Decent modern damping is vastly better and more durable (and more comfortable if you have old bones and crap roads). Better damping will control the wheel so much better, allowing softer springs to absorb shock rather than pass it on to your wrists/arse.
Have fun