One other thing to consider - I worked on a coworker's brakes a few weeks back, 1997 e320. The rotors were worn evenly, not warped, etc. and looked great with no grinding, but had a deep lip like yours. The lip started cutting into the brake pad sensor. He needed new pads anyway, so we put them in, but his warning light was triggered way too early due to the lip cutting into and grounding the sensor. Also, the lip was contacting the pad backing and causing a grinding noise even though the pad had a bit of lining left. I say replace 'em - they don't cost much at FastLane.

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08 W251 R350
97 W210 E320
91 W124 300E
86 W126 560SEL
85 W126 380SE Silver
85 W126 380SE Cranberry
79 W123 250
78 W123 280E
75 W114 280