Short question - would you replace this rotor?
The 'rust band' on the outer edge of the rotor is part of the 'braking surface' - in other words, if I lay the pad on the rotor, part of the pad braking material is on top of this rusted band. You'd think the pads would wear down the rust and keep it clean and shiny, just like the main shiny braking surface.
Long question: what's going on here? How come the pad isn't removing the rusted band? Would running this rotor with new pads cause the pads to groove and wear out prematurely?