panz....
You are absolutely correct. 'Restoring' this bike should be a crime. It looks in very good condition and I urge Sepxlh to just take care of it and keep it original. I would really like to own that machine myself.
There were few made as you state. I have a friend who finally found a Cafe Racer and he was pleased to do so after a long, long search.
It fit into his garage nicely alongside the other 10 Harleys he has. Some of us have it worse than others...............pg

 

Pococj sure there is VIN stamped, located on frame steering head, all -70 and newer should have it.
Some sources you can read that XLCH:s has been sold in CA without VIN on frame

You are right restoring bike is tricky thing, generally problem is that some cases restoring is done so that there is nothing original anymore [X(] from picture you can't see bike's frame... it has lot paint missing and rust isn't nice to see on bike like this.
Plan is to fix only places that really needed, not "over done" ,there is also some " shiny crome" parts that previous owner has installed, they need to be removed and replaced with BLACK.
There is 1201 pcs 1978 XLCR made and there is some differeces in 77 and 78 ( and those 9 pcs -79s ) so I really need to do my homeworks and after that I can point to you those differences...

Still I'm looking place to find that label or base were it can be done... yes I still have that original label attached.
Maybe I'm only half criminal if I'm not doing restoring completely...