Ummm, wow, I have never seen cooling fins blocked to that extreme for a long time, Owing to that is probably why the rings fried...
That bore and piston does not look happy, however I have used worse, a light hone on the bore with a new set of rings at worst would lower the oil consumption but it may never run at its peak again with that sort of damage without a rebore, new piston and rings and otherwise a full reco.
Bearing in mind a new engine of suitable size whether it be honda, briggs, etc can be had for a few hundred dollars or more depending on what breed you decide to go with...
