Can the owner show you a receipt for Toyota AHC suspension fluid? With a reservoir fluid level that's significantly above Max (which isn't a technical issue as such, I run mine slightly higher than Max) it really suggests to me that it's been topped off - but with what? Show me the receipt or work order that lists the right fluid. As damper accumulators age they loose pressure and therefore accept more fluid (fill more) under normal operating conditions. Accordingly, the reservoir fluid level gradually lowers and this might (does) encourage owners and unwitting mechanics to top off the reservoir. Not a problem in itself as long as the right stuff is used.
A '98 with 200k on it, if still running original damper accumulators, will have degraded damping as will a conventional system. Serviceable takeoff accumulators can be had for a reasonable price (I just gave a set away for the cost of shipping) so don't get too hung up on potential dealer replacement costs for these parts. It's also very likely the vehicle's neutral pressure are excessively high, and this combined with aged and low pressure dampers causes poor damping. Neutral pressures are easy to correct with Techstream and flat dampers need replacing which is something to factor in at some point. If the system has been topped off with something other than AHC hydraulic fluid then it's possible the damper accumulators will completely rupture in the not distant future. For example, it's been well established brake fluid eats the dampers internal membranes.
As far as your risk goes - it'll need some work, could be cheap and easy to restore satisfactory damping or it may turn out to be beyond economical repair, which is for you to determine, and then fitting a conventional system would probably be the sensible course of action.