That looks like a pretty good flat spot, is it like that on both of the lips of the rim or just one side? In reality that bike will just be a short hop type of rider, I think that at 50MPH on a pristine new one of those you might have white knuckle syndrome.
It has, what, about 1 1/2 to 2 inches of suspension travel in the front?
Trace the curve of the rim on a piece of cardboard on a "good" spot and compare it to the flat spot to see just how bad it is, that might help with the decision to replace/run. You will not be able to true that out. If the bend is only on one lip you might be able to bash most of it out with a dead blow hammer or something.
You might be surprised as to how little run out is there at the tire after it is mounted also. The question is can you live with it?
You have enough going with the rest of the bike that you might just want to run it to see weather you can live with it or not. If you decide to run it make sure the spoke ends at the end don't stick out inside the rim enough to puncture the tube.