Upgrade Brakes vs. Frone End Swap?

put your bike on the center stand, lift the front wheel off and turn it - it should turn with no drag on the brake. put your brakes on, then release and then turn the wheel again, and it should not drag significantly.
 
I have no drag on the discs at all, will not bother overhauling the original unit as it has hit pavement at some point and is somewhat scored.

I knew about the ratio guide there. My original unit is 11/16ths, so I'm looking for something a bit smaller.
 
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