Thank You 260Remguy, as maybe you can see my vision from the posts in the Mauser forum where this is leading maybe.
I think that rebarreling your small ring 98 to 260 would work fine if the action is in good condition. An added benefit of using that action to build a 260 is that the magazine is long enough to allow you to load the longer VLD bullets of the type that helped the 6.5 Creedmoor bury the 260. I have small ring 98 military Mausers rebarreled to 243, 257 Roberts, and 7x57.
That said, if the 7x57 barrel that is on your rifle is in good shape, I'd probably leave it as is.