Recent threads such as DonVoigt's Navy project and Markbritt's WTS 1900 AE have shown, to me anyway, that refinishing these very early Lugers over pitting etc. is a reasonable approach to improve appearance and prevent further deterioration of the pistol surface. So your plan to refinish over the present surface makes sense.
However this pistol looks pretty good/interesting as it is now. The re-strawing and steel wool work has improved appearance significantly. So in my view you now have the option of leaving it as it is and protecting the surface with Renaissance Wax. I'm not saying that is a better strategy, I am just pointing out that given the improvements made, you have some options.
Shakespeare on bluing: "All that glisters is not gold." (Merchant of Venice - Act 2, Scene 7).
Have you fired any more rounds with it?