I also have a 124 car with a 5 Speed. It's absolutely great. Get ready for people to start emailing you wanting to buy it.
I did not put the entire Sportline suspension on my car. I put on the sway bars and performance shocks. It does great, and that's with 195/65-15's. Some 16 inch wheels with 225/50's would work even better.
I don't know of a short shift kit available for this car, but I understand why you're looking for one. In mid '87 they changed to a totally different manual transmission and shifter, so mine is not as long throw as yours, but it is still a little like a truck. I'm still not complaining, I love driving this unique (at least in the US) car.
Have a great day,
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