That Ambassador is way cool.
The K1 is so perfect and costed so little, that I would keep it instead of the K0. You can sell the K0 and make an instant $2000 profit.
There is something strange with these things. When a new vehicle is born, early teething problems make engineers modify the original design. In many cases, owners are told to take the vehicles so the modified parts can be replaced at no cost. Using logic, the best year of a given model would be the last one, when many owners has been unwilling vehicle testers.
But when it comes to collectability, seems that the original ones are more coveted. They are very hard to live with in my opinion, for as you say, you don't enjoy them for fear of damaging them. I have a K1, but wouldn't mind to own a K6. In fact, I think I like the tank paint more than the K1.
If you are not going to restore it, you have better bikes to ride. Sell it and get funds for your other projects. I only have two bikes in restoration -and three in running condition-, and I know what is it like to feel that you don't stop working on bikes but never get anything finished. I'm very close to finish my CB350 and I don't think I will get more projects. Sun rays can make you warm but the only way to make them fire up is to concentrate all of them in a single point. The same goes with projects.
Raul