i think some of that is over-kill. i mean its by the book. so the cyls have some appearance of rust, some is 'below' the surface. a good sanding job of cylinders should be sufficient. i mean its not going to be 'perfect'. for one the ring ridge isnt a wear ridge, you can see the top ring, and combustion chamber, area. so it has some rust. the pistons look quite good. from the one side there is a wearing place. they may well be good.
the gasket surfaces esp. the head gasket area, id take steel wool, maybe course steel wool, i put kero in a spray bottle and try to clean up that/those surfaces. dont try with sand paper. doesnt have to be perfect. better is better, and may well be ok. block looks low, not too much usage. one thing looking at water jacket, seems some build up in these. they may want some flush out.
magnaflux, what kind of price can you find. for one as i recall a good magnaflux job isnt cheap, for the price you putting at least part, maybe more of what a new, or pro-prepped block may cost. to tell the truth your block looks real good, it would have been better to lube lightly and perhaps to prevent the rust, or most of it.
the one piston has one shinny spot, perhaps a wear spot, one spot, may not be a problem, again the second pic of pistons, the prev piston<is the one all the way to the right. the one next to it, at the forward, has a wear area there, some, may be about nothing. again the first pic, the one piston all the way to the/our left has a little wear. check corresponding on the block, cyls check there for a pattern.
you can prob find measuring tools at like sears. i mean its not expensive and its, well, ok as far as accuracy. get a manual and check block, and parts. you can get a good enough measurement to tell a lot. it just takes some patience and is time consuming. like the cyls and the pistons something like 4 corresponding measurements tells you quite a bit.
you can lightly hone cyls if you want,
and the mains dont usually just need an 'align'-ment, i mean what im looking at is low uasge, not much wear. if you can imagine the need, cost of a shop checking the mains, hey if you dont its not been fully checked out, and/or deemed 'perfect'. >if it were high mileage, or looked beat on, yes it may need to be checked. yours just looks like it was stored uncovered & dry. get almost all the rust cleaned up, you will have no problems, maybe it ll all clean up, needs elbo-grease.