@bamelanc, I'd hard wheel those munched-up clearances in straight and clean up with a flap wheel. Make it so it doesn't look like an angry beaver went after it. If there is nothing wrong with the trunion races and the axle seal mating surface, the housing is fine. It looks like it is somewhat...
It looks like someone may have (very badly) clearanced those knuckle balls for the later birfs if they used an earlier housing and converted it to oem disk brakes. If the birfs aren't munched on the outside, I wouldn't worry much, but would totally try and clean up that inner surface.