"Daily Driver" and "Best Handling" generally don't really belong in the same sentence when it comes to a vintage Mustang. It all depends on your priorities. For example, I have a 65 Convertible with 620 coils, kyb shocks, 1" sway bar, HD leafs in the rear running standard 205/70R14 tires and the car handles extremely well. This car is my Southern California daily driver. It's a like a go cart, but the ride is very harsh and can be exhausting at times.
In contrast, I have a 66 GT convertible that has its stock GT suspension (coils, sway bar, rear leafs), but with single stage adjustable QA1 shocks with 215/60R14 tires. The car hands very well and is very comfortable. It may not handle as well as the 65 with the 620s, but I actually prefer the GT suspension for daily driving.
I have a 65 Fastback that also has 620s, 1" sway bar, Shelby drop, kyb shocks, mid-eye HD leafs with a 3/4 rear sway bar and this car handles way more aggressively than the other two cars. However, I jump in my 2019 GT350 and it just blows EVERYTHING else away 5x over . I mean, how much are we expecting from vehicles that have leafs, solid rear axle and these vintage cars can only run tires so big, so the contact patch is limited by modern standards. I also have a 65 Fastback with a Coyote, Heidts Pro G front clip with IRS suspension and should have the car on the road within a couple of years. I'm sure its handling will surpass all of the other vintage Mustangs that I own. I mean it will probably cost close to six figures to finish, but the 2019 GT350 will still blow it away.
In regards to daily driving, I would definitely upgrade the suspension, but its about finding the right balance for your expectations and taste. Also, consider what works for your wallet. For my 65 daily driver, I would recommend installing LED lighting, tandem master cylinder, run disc brakes up front, and consider AOD or a T5 for overdrive. So that modern "feel" goes beyond just the suspension. A 3G alternator, EFI, and hi back seats may be something to consider. Everyone has a difference in opinion, but these are my suggestions coming from someone whom has stock, to mild restomod, to extreme Coyote builds. I love all the difference in opinions and options out there to customize our vintage Mustangs.