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That damage isn't good. Ideally the piston ought to be replaced.
However, I can understand why many wouldn't as people often feel they are in the realms of uneconomical repairs.
How much damage has been made to the head?
The first thing to check is the height of the piston protrusion above the block and then make an assessment from there. Compare this height with the measured heights of the other cylinders as well as the data in the FSM.
Blending the impact damage with a dremel tool might be appropriate to stop stress cracks so long as the connecting rod hasn't been bent.
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