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IMO, the Gen 2 Camry has a very good suspension, but fitted with "family car" tires their limits are pretty low. Get some decent tires on them and they handle well, even with the stock suspension. My '87 LE is very, very close to stock (the only difference is 195/65 Goodyear Eagle GPH's) and it handles very well; the balance is surprisingly neutral for a front-wheel-drive car.

Given its light weight and good balance (especially for the 4-cylinder version), I'm sure a modified suspension setup would give you pretty good handling indeed.
 
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