Jami,
You are of course free to do what you like with your boat - it is yours, after all. However, since you ask for advice, here is mine:
If the boat were mine, I would rather fit a new rudder onto the transom. This would be as deep as possible (about as deep as the original one), and with some balance area in it. It should still clear the original rudder, which I would keep. The original tiller would be replaces with a very short one and generally kept in central position. The 'old' rudder would then turn into a big course-stabilising skeg, The new rudder, made with a NACA 0017 profile, would be more efficient, both because of its shape and because of its increased distance from the boats CG and CLR.
Arne