That ridge on your cylinders is not wear but more probably carbon deposits. Don't pull your pistons until you ream this ridge off. Then you can take your guages and mic the cylinders correctly.
If you buy the neighbor's 235 all you are getting is another engine to rebuild. This is going to cost you some dollars but don't try to do it cheaply, but it can be done within reason. Rule of thumb is- If you pull an old engine and want to put another in- make sure you only need to do it once. Thereby it must be a new or rebuilt engine. I have a few running 235s sitting in my shop but they are old, so I won't put them in a rig until they get rebuilt.
Oly in Oregon
Rest in Peace1945 GMC COE Victory Truck
1953 Willys CJ3B
1955 Chevy 1st series 3/4-ton
1958 WIFE Last series
Never say "Whoa" in a mud hole