I concur wholeheartedly with Bob Z. There is almost never a need to rationalize a new/better tool purchase. For shooting a model airplane, you may be okay with your compressor, but I would use a siphon gun rather than HVLP. I really don't know why people are so sold on the HVLP stuff. To get it to atomize as well as a high quality siphon gun, you need a $300 Sharpe HVLP or, better still, a $450 Satajet (especially for metallics!). People don't seem to realize that HVLP was foisted on us by the EPA as a way to reduce overspray/VOCs. Professional shops use them because they are MANDATED, not because they shoot better.
I know many people will disagree with me, but one of the WORST guns on the market is the Harbor Freight 'purple' HVLP. Worst of all worlds. I say this from the perspective of shooting cars, not airplanes.
But back to your question: a larger compressor will maintain a constant pressure at the regulator, and do it without constant running. This reduces the temp of the compressed air and reduces the moisture in the air. Both of these things will help ensure a good paint job.
I would suggest nothing smaller than the Campbell-Hausfield 5 hp 60 gallon 220/1 phase compressor for painting or running air tools. It will keep up with most tools and is very inexpensive. I had one for several years before buying a Snap-On 5 hp 80 gallon compressor (big difference between a US 5 hp motor and a chinese 5hp motor......). My next compressor will be even bigger. Maybe 3 phase...
Good luck with your project!