I spent a summer restoring a handful of windows, just back to regular glazing. I found that any shortcut I tried ended up taking more time to fix the side effects. I think one reason that restorations aren't done much is not just skill, but time which equals money. However, I also think that there are a lot of false assumptions in the decision making.
Old wood sashes were made with a much higher quality wood than available today. I've heard that modern, fast-growth wood sashes are only expected to last about 25 years. Also, people mistakenly think that the problems with old windows being cold is the single glazing, and that double glazed windows will just beat anything you can do with an old sash. The leading problem with old windows is probably infiltration, and new windows fix that in the process. However, you can fix old window infiltration by reglazing to fix leaks around the glass, weatherstripping around the sashes, such as with spring metal for durability, and sealing the weight pockets. I've chosen tape springs so I can completely seal the pockets with insulation, but you can also use PVC pipe channels for the weights, with chains instead of rope to avoid wear and breakage, then seal around the pipes. By the way, fiberglass insulation does nothing for infiltration without an intact air barrier.
After solving infiltration, you can then get to the double glazing with storms. An outside storm has the benefit of protecting wood sashes from exterior weather. They also allow a much bigger air space, which is really where the insulation is, not the second layer of glass, which is just there to keep the warmed, sandwiched air from leaking away. Thin double glazed panes don't have enough air to be much of an insulator. The extra air space can make up for leakage compared to a sealed pane. I think I read a old triple-track in good condition matches a double pane with a 1/2" air gap. If you already have an exterior storm window, you can paint the frame to make a huge upgrade in look. And if you chose a contrasting color, it makes a nice accent that seems to indicate you intended it to be there and part of the building. If you are buying new storms, you can get low-E coatings for even better performance (heat reflection and UV).
Finally, restoring is much better environmentally, rather than trashing the old stuff to put in manufactured new stuff.
---mike...
p.s. for the window restorers: Have you tried steaming for old paint removal? I was able cut through all dozen or so layers of original paint in one pass with no chemicals or destruction of the sash. The steam keeps the temperature low enough to avoid fumes or fires, and it softens glazing compound, too. I used a $35 Conair steamer from Target on a small project. I made some comments and a short video at:
http://forums.finehomebuilding.com/brea ... aint-steam