Well, I've not heard of anyone replacing the whole clutch mechanism. In fact, on the list of parts on my Baggy that need to be chucked altogether and replaced with a better one, the clutch mechanism isn't even in the top 10. As long as you keep that cable lubed (ask me how I know about this one!), it should work just fine.
Now, if all you're looking for is a short clutch lever that you can get in polished alloy and that will work with handguards, now that's a road I've been down. In fact, if that is indeed your dilemma, you're in luck! This is one of the VERY rare items on the Baggy that can easily be sourced from numerous suppliers and in many different configurations. I went with a polished Sunline shorty (a steal at US$9.95), but any lever that will fit a 96-98 KTM with a Domino clutch should do the trick (I think just about every KTM dirtbike made from 1996 to 1999 had the same Domino clutch).
I will say that I'm intrigued by the ASV unbreakable levers (
http://asvinventions.com/levers_order/), and have been trying to figure out how I can work those onto my Baggy. But given the cost and the fact that I'd likely have to change out to a completely new brake master cylinder (not that it's impossible, just that it takes brain power and I'm a little short on that these days), that's just a back-burner type project. I will say, though, that I think those would work great, if I did come up w/a new front brake M/C. It looks like the ASV "Universal" clutch lever would work on the Baggy's Domino clutch mechanism, and they make a brake lever for a KTM/Brembo M/C, which I'm sure would work on my Baggy, if I could come up with a good used or cheap new one somewhere.
Ah, but those are just pipe dreams at this stage. First I have to find a new oil seal to cure the leak I've got going on the bottom end. And then there's the carb issues, and the top end work, and the new guages, and, and, and...