It is a "decent" bike stock, but they all need the balancer chain tensioner lever (doohickey) and spring updated. The sooner, the better. Bits can fly off, from all years, and nuke the engine. Some people go way overboard on upgrades and updates IMHO. My stock bike runs great, and I have not touched the carb, cylinder or exhaust. Plus I got mine dirt cheap all farkled up, and there are lots of them out there.This is the sort of thing that has me really second guessing a KLR for my next bike. It seems to me like the dang thing needs SO MUCH to make it into a decent bike you've doubled the price.
If a KLR is going off road, the thing needs a skid plate minimum with crash guards and brush guards highly recommended. I am a big fan of Happy Trails and PackRat racks. The stock seat sucks too, but I have never had a stock seat that did not. Suspension is an issue with some folks, I am a little guy so I just set the rear shock on "4" and take off. The front is soft and could use some work, I will probably add stiffer springs and a little preload later, Ok for now.