If the pits in the piston are above the section that moves through the seal, then they would be fine. The section of piston that sits outside of the caliper often gets all rusty, but it doesn't hurt anything because that section isn't moving through the seal. And speaking of the seal, be sure to remove it and thoroughly clean the crust out of it's groove in the caliper wall. Over time, brake fluid works it's way in behind the seal, dries out, and forms a "crust". Eventually, this forces the seal out more and the brake starts sticking or hanging up.
If I do replace a piston, I get a stainless one. They're not much more than the original steel type, and they'll never rust. Those pads look like they're coated with grease or oil. If that's the case then they're toast, you can't clean them, I tried, lol. Brake cleaner got them looking nice and clean, but within an hour or so, more oil oozed to their surface and they turned all dark again. The pad is like a sponge, lol, and soaks up oil big time.
As far as what brand pad to get, any is good, including originals. I really like originals and think they work quite well. I do run aftermarket though, Ferodo Platinums. At first I didn't like them, didn't think they were much, if any, better than stock. But once they bedded in, they were quite good.