I had 4 of these on my layout for years. I did not replace the wheels, but I used the old Roco switches which are pretty loose standards.
Also I did not replace the motors. I did eventually install DCC and found that the current draw was low enough that I could use an inexpensive HO decoder with the original motor. The pittman 8000s require big O scale decoders. I used a digitrax DH123 in mine and they worked fine. That decoder only had motor and light functions. I did not try the John Armstrong work but that should improve them. I never got to it but I ran my pairs for over 20 years and they did fine.
All work I did was in detailing. First if you want to stay on the cheap side, then don't consider new shells, drives, etc. If you want to spend more, scrap these units and start new with P&D Kits. they still have some F7s and F3s in stock. And you can get all kinds of detailing parts from them too. You can also get B units if iyou go the new route. Either way is fine. But I think if you get to putting too much money into the old Atlas you are better off starting new. I have done both ways.
When I did mine, I carefully cut off of the cast in handrails, and made new ones with wire. I removed the steam generator stuff on the back. And I moved the portholes over to where they sould be on an F7. Then I added passenger pilots and antennas to make them look like Pennsy units.
I have some Keil-Line parts in my parts box I would part with. I am pretty sure I have a couple of there passenger pilots, some of the porthole window frames, PRR antenna brackets, and maybe some stirrups. Contact me via my email in my profile if you are interested.