If the bike isn't misfiring and if you run it in the dark and don't see sparks, its probably still fine. However, I would be concerned that if the outer jacket is cracking, the inner wire insulation is not far from deteriorating, if not already starting to. If I'm not mistaken, early H1 plug wire is 7mm copper core wire. You can buy it online or Tractor Supply carries it in a kit. I'm not sure what you would use for the outer jacket if you are going for the original look. I used an Accel universal 7mm kit that my local parts store had in stock to fix the plug wires on my H2, but I now have yellow plug wires.
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