Well after trying to get my ped started after a soft seize, I finally took the thing apart. It will give me compression when I pedal it, gas is going in (wet spark plug), and I'm pretty sure I'm getting spark.
The pictures below will show you what I've got to deal with.
The wear marks dont appear to be that thick at all, less than the thickness of a piece of paper. The "smudges" on the piston seem to be holding the ring in place on one side. Also the piston does not seem to have changed shape at all, but maybe I'm being too naive or hopeful