Re. aftermarket carbs, you might consider Mikuni VM32 or VM34, but you'll need to do a lot homework on tuning and a lot of trial-and-error testing. Jetting for those will be closer to XS650 baseline than you might think. IMO the VM32 would be the better choice; an open throat carburetor offers much more free venturi area than a vacuum carb of the same bore size with a shaft and butterfly in the throat, and the 32 would give you plenty. You'd need cables, carb boots, filters, and a whole lot of brass, and if you try to economize with knockoff jets you may very well regret it. I have no idea what carb boots are available for the 500, but with either carb you'd need boots to fit a 40 mm. OD spigot.
The downside: not cheap and not easy, especially the first time around. The upside: great project for a patient guy who's willing to study and learn.
Good luck to you!