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If you plan on polishing your chambers it will go away. Cleaning them up is always a good thing.
It looks to be Casting flash and thats not all that uncommun so I would think you fine.
I like to clean mine up. Anything with an edge can become a 'glow plug' so to speak. Also like to clean up any material that over hangs the cylinder. Unshrouds the head stated in a simple way......
Needs a valve job for certain. And no,don't worry about that little bit. If it bothers you,grind it smooth. Lay a new head gasket on the head and then grind to the gasket.
You must mean the rust pit that has eaten into the deck surface. Get a head gasket and make sure the metal ring is far enough away from the rust spot. If so blend smooth and proceed with rebuild. If you need more deck to seal the gasket on have .050" (or what is required) cut off the heads. And don't forget to correct the intake side.