Another option is to cut the coupler mounting extensions off the frame, then build styrene pads under the end walkways, and body-mount the couplers using screws. This also allows you to close the gap in the pilots below the couplers.
To insulate it, stick a piece of electrical tape or masking tape underneath. For electrical pickup from the left rail, tap a screw into the chassis and run a wire from it to the decoder. A 2-56 drill and tap set is pretty cheap if you don’t already have one.
I really think this would be a good project to try and convert to DCC. If you give up or screw it up you can always just make it a dummy. It’s a nice looking loco and since it runs well it seems a shame to not at least try to give it a place on your roster.