I have a habit of collecting wood cabinets that look that bad, and dragging them home to give them a coating of "Old English Dark" furniture oil. You would be amazed what it could do for that cabinet. I do not know if it would bother the decal because I have never run into that problem. For really dry wood I have been known to coat the whole piece of wood to seal out moisture.
I was given a rocking chair that a puppy had cut teeth on, that had all of the stain and finish, and some of the wood missing. I brought it home. Used a little sanding to make it smoother, not perfect, and then used the "OED oil" on it and until I point it out, no one sees it. I do put a couple layers of oil on the really dry or scratched areas. Best part is the color of the oil hides a multitude of boo boos. I also use it on my dining table to protect the finish from wet glasses, and hide the rings it got before I started oiling it.