Sicker cats than that have lived,so to speak.
They make Scotch brit flap wheels which will not cut into the cylinder plating but will remove the tramp aluminum.
If the rings aren't toast and the piston not completely shot,it may still run,although not perfect.If you can remove the high spots on the piston it may still run for years.
Clean it up,put it back together.If it holds a reasonable amount of compression,fuel it up and give it a whirl.You aren't out a thing,except a little time.
I ordered a new piston today - I am looking for a gasket kit and maybe some other parts I read about in another recent thread.
I would recommend a new intake plate (the white plastic piece that the carb screws into) and new grommets for the intake and the pulse line nipple (usually the green ring stuck into the cylinder right next to the intake)
That sounds low cost.
I figure I will then get it all back together (Hopefully), set the carb to factory (Still need to read up on that), then tweak the carb (Still need to read up on that) and see how she whirls. I am meticulously cleaning all the parts so she looks new while I'm at it. I wish I had a parts washer