Well money is tight after buying the truck, and I don't have much to lose by trying to fix this engine. It is in the truck still anyway, and I'd have to put it back together in order to move the truck to a place where I'm allowed to swap the engine.
So, I'll just put a new (used) piston and rod from a friend at a machine shop in it. I'll replace both #7 and #8 bearings to be safe. Luckily, the crank looks just fine, and the abnormal bearing wear was quite minimal. I'll check everything out as best as I can, and plasti-gauge everything real thoroughly. It sounded pretty clearly that there was only noise coming from a single cylinder, and all the others look good and feel good. I really feel like this engine still has a lot of life left in it, so I'll see what I can get out of it. All the other parts looks so good, I just can't bring myself to trash it.
And yeah, that crankshaft counterweight was definitely scraping past the piston when it was at the bottom of the stroke. That's what the noise was coming from. If you look closely, you can see a crack in the piston right at the wrist pin too.