Okay here's my input, i am very picky when it comes to how original S1's are although im not biased. If i had to have a panel on my S1 painted, it would piss me off to say the least because my paint for 21 years old is like new and polished beautifully. But.... if i did have any fading or stone chips i would have it painted but i would be paying high money for a 100% job. I would be happy seeing it look right again nice and fresh.
I personally would have it painted Dry... faded toe hook covers and chips to the valance make the car look tired. Plus if you ever go to sell it, you aint gonna get good money for it if the paint is tired. As long as you know ya panels are original i wouldn't worry. If it were me id have it done but shop around first and get a few opinions and find out what quality of paint is gonna be used etc.