I run a cable skidder everyday and I dont think you'll find it very fun grabbing your cable with it loaded with grease. Plus I dont think it'll make it any more pliable either and as far as the rust its only surface it'll be gone after the first hitch. Dont worry about it, it'll eventually break anyways!
Use Amsteel Blue, its a synthetic rope that is stronger than steel and doesn't rust.
Sam
Checked on that stuff. Pricey.