Yep, and that is what I would do instantly. An older control like that is going to be a pain. For one you would have to find an old computer to connect to it and then get a program from the manufacturer just to be able to drip feed gcode into it. Not that that is a super big deal, its just that by switching to a pc for control, you will have a lot of cool features you wouldn't have had on the original control. For instance, if you want to face a block of material, just use the wizard in Mach and it creates the Gcode for you right on the machine and hit the start button. Simple.
A VFD is going to be about $200 and is pretty simple to wire. Hooking that motor drive combo to a computer is probably going to be a little tougher and you are going to want to find any and all wiring diagrams you can pertaining to the electronics you have there. I am fairly certain that those are analog drives, which means that you will need to provide them with +/- 10V to get the motors moving. I believe you will need a Mesa 5i20 pci card to handle that chore. I did some looking into it a while back, as I wanted a closed loop system on my machine.... then I cheaped out. (actually, the machine as it sits does what I need it to do just fine, so I decided to keep some extra money in my pocket)
If you are comfortable reading basic wire diagrams and aren't scared to wire this thing up yourself you could have it up and running for under a $1000. Then you will need to start buying collets, endmills and specialty cutters depending on projects. That is where you will really start seeing the cash roll out the window. Nice thing about
cnc though, you can get by with only a few different endmills. Sure it won't be ideal and projects will take a bit of extra time, but you can do it.