Yeah, that sucks.
Some light surface rust on the crank counterweights doesn't really bother me. I'm not saying I like it. Loose rust anywhere that could flake-off and enter the oil WOULD bother me.
"I" would put a wire brush against all that rust, and remove anything that flakes off easily. And that oil pump would come off, apart, and the pressure relief system would come apart for inspection. It may be that the pump is totaled, if the pressure relief valve or it's bore is damaged; the gear pocket or the gear teeth damaged.
As said...look at the cylinder walls. Look in the intake and exhaust ports, too.