Speedracer, nothing in your photos looks that bad. The wristpin spacers in the pistons will control any side movement of the rods. The skirt staining happened over time and not just on one run. I'm thinking any sounds you are getting from the engine is from lack of a normal lube film on the parts caused by the lean run. 2 stoke engines depend on a fairly heavy deposit of viscous oil between the parts during normal operation. This stays there unless the engine is run lean then high temperatures evaporate it or burn it off. Run this way too long and you get scored parts which I see no signs of in your photos. If this was my engine, I'd reassemble it and run it some more to see what develops. I know you know engines well enough to know if there are any bad bearings and you indicate they are ok. Other than some blow by staining, the piston skirts look good too. I think you have quite a bit more life left in that engine.