Looks like the top of the photo points toward the pad, yes? Don't sweat the gouge, then. If that's the worst of the pitting I'd run it without worry, especially if you're reusing the old pads. New pads may push the pitting back to the seal area. Either way, I've run way worse than that. Get a new seal, keep a close eye on it, and budget for a new piston when the pads are due for replacing.
Dow Corning High Vacuum Grease is a bit spendy, but even a small bit will last you something resembling forever. It'll definitely help prevent the moisture that causes that pitting. Just mind you don't use it anywhere behind the seal, i.e. where brake fluid is.