You're going to have to make a choice. The bottom end will need work...at the very least, one new piston and sleeve. The head needs to be cleaned up by a machine shop, where they may find additional problems. If you have the cash and the will, do it. Next best choice would be a used replacement motor. And finally, you can scrap the car.

This damage was probably due to some sort of abuse: allowing water into the intake, flooding, some idiot playing with water injection, badly contaminated fuel, or running pure water or a weak glycol solution for an extended period. Once a pinhole in the liner allows coolant into the chamber, cavitation damage multiplies. It's not going to get better without help. The nature of this problem suggests that there may be similar damage forming in other liners...the only way to tell would be to pull them all. It's bad news.