looks like a throttle body cleaning is in order..... that should put an end to the sluggishness.
the loud screeching noise when your turn on the AC could be from the compressor bearings or maybe the AC clutch ...... sounds like a bearing related problem and i think you should THUMP anyone who says its a common problem.
palio powersteering are generally pretty good. not much to speak about but they do their job. and the same power steering is certainly going to work better on a thinner tyre section. but nevertheless i guess you should have the oil level checked. if i'm right the power steering in the palio was hydraullic.
can you be more specific about these "fancy things" that you have mentioned?? some could be important and useful and others simply an eyewash.
i'l leave now and let the other italians on the site help you with first hand tips and suggestions. good luck!!
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