I don't have the shop manual at hand. Is there a service limit shown? If under that I would not be too worried.
What happened to get the engine pulled apart? If compression was down and smoking, and valves/stems were good, suspecting the pistons/bores is reasonable.
These engines usually smoke a bit on start as there are no stem seals on the exhaust guides.
If my bike, and I wanted an update with pistons & rings & rebore, I would go with an overbore to 466cc. But that's me. A set of +0.25 pistons, rings and gaskets, if available, is going to cost probably less than a complete kit. You get a bit of a power boost but stock carb setup should be fine.
Yes this is max bore and no further rebore is possible, so that's it for those barrels. But, seriously, how many miles will this 45 year old bike be used?
Just a hone and new rings might be OK but the bores wear oval and the rings wear oval to match... so if they are worn the new rings will have a hard time sealing.