Good question. It's what you may not be able to see that might bite you in the ass. Such as cracks. While the skirt damage looks fairly benign and could be cleaned up/sanded perhaps, what if there is a crack in that body or one of the ring lands?
Me, I might be tempted to clean it up and hope for the best provided I could see no more damage.
However consider Johno's racer. His piston self destructed which may have been caused by an unseen fracture after it fell off the table??
Maybe Wiseco could inspect it or replace it.