Because the battery "box" oh the H7 is open you can run either a flat or hump pack. I think the new H7 black is still competitive enough to run at club level racing.
Like anything else in this world, you can spend whatever you want on this hobby, but you DON'T have to have the latest/greatest buggy to race locally.
I would put a dab of shoe goo on the e-clips, ditch the pull starter, replace the steering servo with a z-590, and add a rechargeable receiver pack. Other than that, keep spare steering knuckles on hand and have a ball racing. Good luck.
OOPS - I left one thing out, wheels and tires. The stockers would be okay for practice / bashing on, but for racing I'd get a new set of wheels/tires.