one thing you can do, is remove the rest of the finish , and get some tung oil, and use that as a finish (gives an extremely silky neck feel, without a feel of finish on the surface, you do not let it build up). I did that with a squier a long time ago, here is a thread where I sought advice.
http://forums.carvinmuseum.com/viewtopi ... t=tung+oilThe fret wear, if never dressed before there is probably a whole lot of fret left, you would do well with a levelling and crowning.