It has enough power for you but if you are looking for the accelaration and speed of the newer boats you need to look for something bigger. I have two 92 xp with teh 587 that I first started out with and I still love to ride them.
You will need the topend kit. It includes the gaskets, bearings, and wrist pins that you'll need to rebuild it correctly.
Try looking on ebay for that kit though, I bought one a few months ago for the 657 and it was only $199. The kit also includes the overbore dimensions that the machineshop will need to bored the cylinders to. Make certain that is done correctly and verify the dimensions afterwards if you can. If they make the fit too tight, you'll sieze a brand new rebuild pretty quick.