Hi there
All engines will wear piston rings if not maintained correctly, especially small engines like this, oil was probably never changed, nor the air filter
The biggest problem with going deeper with little engines these days is cost. The bore may not be scored, in 4 strokes it rarely is, it is probably well glazed (shiny) though and will no longer retain oil. If it has been burning oil, most likely it will have been coming from the rings, due to the side valve design it wont have been coming up through the valves. Depending on just how much carbon it has around the piston, another check you can do is put the piston at TDC and see if you can rock it back and forth in the bore, a good telltale that the rings are worn out.
It is entirely up to you, but just remember you are up for a head gasket anyway, you will also need a crankcase gasket and ringset if you go further, you will also need to hone the bore if you want to do it properly. All up parts will most likely cost more than the engine is worth.
Good Luck!
