Agreed. I'd replace that cord for sure. It's just too dangerous. Otherwise, as you said, it's a good beater machine.
Looking at the first photo, there seems to be a Kirby (Classic III?) in the background, possibly with a hose and some tools in a box next to it. That would have caught my attention before the ShopVac.
The Goodwill store near my house uses an Oreck-looking Hoover upright like the one in the middle of the first photo for it's store machine. They previously had an Electrolux upright that looked like a Discovery II but simply said 'Lux' on the front of it.