For what it's worth, my 261 had two cylinders with really deep gouges in them; maybe not as deep as yours. I didn't know any better and didn't have much money anyway so I honed them all, put on new rings and bearings while I was in there and closed it up. The block was already bored to .080. That was 16,000 miles and 3 years ago. I also had a guy do a valve job and put on new guides and seals. I am using a little over a quart of oil every 3000 miles. The compression in those two gouged cylinders is a little lower than in the others but we move along pretty good. Bottom line on these old engines is they ought to be in REALLY bad shape before you scrap one.