an update...........
An update and best solution.
After looking at all the options the cheapest best option is to send the stator to Ricks Electrosports in New Hampshire. He will rewind the stator to a 2 wire single phase for 145 including return shipping. There are many world wide can do a proper job for cheaper than I(you) and most will give a 1 year warranty
Choices I checked into
rewire myself...300 bucks to purchase everything as cheap as possible then there is time and effort...alot of both. My stator had to soak in epoxy remover for two weeks to get it apart. Will require epoxy replacement, rewire and re install. As I am incorporating and going my own way, not worth the time or trouble at the moment.
98 ST2 stator....145+ shipping(170US) new 2 wire single phase...requires spacer and shorter bolts and WILL NOT match the output of the stock rewire from Ricks. Any one need a brand new ST 2 (97/98) Stator I have one.
The rewire will absolutely require a better airfow to the regulator than even the ST2 update . Thinking of going the route of JWilliams and fan install.
One last thing I will look at is putting an oil slinger in to help keep the new stator as cool as possible prolonging its life. If I had ST2 parts sitting around I would most likely figure out a way to take a Paso Stator rewired 3 phase and fit it to the Rare Earth Magnets of the ST2 and call it a day, well more like a week

It would in the end be a more modern long lived solution without the added heat issues of going full single phased.
A couple of things in passing
The ST2 97/98 version is a two wire 16 gauge(larger wire) wind but not as wide at the armature as the Paso(18g) and much less wire as in fewer turns
My 907 has the 2 wire single phase with 40k miles. Still works but need a rewind as well.
Re magnetizing is possible but not for your average non electrical Pasoist.
Could be a fatal mistake if you find electricity not your forte.
Will not be better than new for long, just new. You may find a new meaning to flaming Paso

or worse crispy Pasoist

Rare earth magnets are very expensive as it would take a custom rotor.
The ST2 rotor would also take big mods do able but complicated. Crank replacement required there is no other reliable way to do it. At the very least after all the mods to put it on a non ST2 crank it would just twist the crank till it grinds the case or breaks. You can lighten some parts but not the magnet