I would apply full power and sidestep, my 172 has plenty of power to go around with full flaps, and I've practiced the maneuver before.
Ah yeah, you've mentioned the upgraded powerplant the previous owners installed a couple times, good deal (how fast can it climb with full flaps?).
Really? Short final should be the most "low energy" portion of the flight....unless you like driving off the departure end of the runway. Not once in 6000+ landings have I wondered if I have the "energy" to maneuver when landing. My only real energy concern has been having enough to arrest the sink rate (sometimes on a steep, short field approach you need a bit of power in the flare to "cushion" the landing).
The odds of someone pulling out in front of you are pretty low (but I've had it happen), I'm not going to carry any extra speed "just in case". The hazard of the extra speed outweighs the hazard of what "might" happen.
Again, I have no 172 experience, but how much runway does it need to stop at 80knts? The reason I even brought this up is coincidently just as you mentioned, I see 172s at least once a day with full flaps ~60knts (maybe less sometimes) and then having to really gun it to cushion it on the flare. Maybe they're practicing techniques, but I'm not counting those more obviously practicing power-offs and such.
Buster jogged my memory a bit, someone before once told me a couple years ago full flaps on a 172 isn't really much defelction (due to I recall surface area and the 40deg limit) at full. Funny coincidence again, that same person hasn't flown a 172 in a while as he also enjoys his BC a metric-ton more these days too (particulary the days that it doesn't need any fixing or work).