From the experience that I've had with my '81 R65, that's the same ressult with OEM parts on braking in real wet conditions, kind of a' soft feel', and a squealing from the front , and not much braking power.
I have the OEM dual disc set-up on my '81, so I can't tell you if there is a significant improvement over a single disc.
You need the larger master cylinder, if my memory is correct, it is a 15 or 16 mm, the single disc is a 12 mm, ( the number is cast into the master cylinder body).
Some riders claim that they have more 'feel' with a smaller master cylinder when used with the dual set-up, so I guess that would be up to you to figure out what best works for you.
The brake lines , if they are original, probably should be replaced, even if it's with OEM rubber lines, 26 year old rubber brake lines are probably not helping your braking at all.
I installed a set of Luftmeister braided stainless lines in 1991, and from my personal experience, I would not go back to OEM rubber lines, that and the fact that they were only $10US more than OEM rubber lines.
I just installed EBC floating steel rotors, and EBC graphite pads, and it seems to be an improvement over OEM, but I only have less than 100 miles on the new set-up, so I can't give too good of a review on them yet.
As far as handling, I don't think that with the type of riding that an R65 gets, that the added weight would be detrimental to it's handling.