Your plan A might be the wire wheel and sandpaper method, but the pitting is pretty significant and it will weep grease more easily than a good set of balls. Your plan B might be good donors off an FJ40 or FJ60 axle. Basically you'd use the Cut and Turn principle.
I would certainly look for an outer housing. I have a few, but much earlier.
I think I may have been able to save these knuckles. After the rework I can not fell any imperfections, flat spots, etc...on the one side. The other side I can feel some of the deeper pits but nothing above the ball surface. Maybe further rework not necessary what do you think? Should I still go with a skim layer of filler? This will be a daily driver as well as weekend trail runner. As far as the oddly marked bearing races, I am addressing those in the build thread (Forsaken 40) in my sig.
What I used for the results shown below. I wanted to test what the effect of these types of wheels would have so I bought a couple from Harbor Freight (even thought I despise that store and their China garbage). Turns out this type of wheel (rather than a flap disc) had an unexpected, but good result IMO. There were not really many sparks coming off but they did remove all the high spots of rust accumulation resulting in very minimal pitting below the surface. I took many passes and alternated the direction and angle of each one. It was interesting that if I focused on one spot going back and forth enough if would give me a slight mirror polish. They did generate quite a bit of heat on the ball surface as I could not touch it right afterwards. I had to use the die grinder and small wheel to get as close to the axle tube as I could because the head of the grinder and the shock mount kept banging heads. Large wheel was $5.99 and the small wheel was $1.99. The process took about 20 minutes per side.
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Before:
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After:
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Other side (before):
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After:
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Nice job!!!