As long as there isn't pitting that compromises strength or the threads, it should be fine. Picture seems to show superficial rust only. Heck those shoes are still good as cores. The bearings do not use the spindle as races. EDIT: the seal race will need to be smooth to not tear up the grease seal lip. Sent from my SAMSUNG-SGH-I337 using H.A.M.B. mobile app
Depends on how rusty it actually is, take some fine emery cloth and clean the surface rust off of it and go from there. If no big pits on the bearing surfaces then you are good to go.
The threads need to be good, and the largest area on the rear (the grease seal) need to be good. The rest just needs to be straight and not undersized so the ID of the bearing race doesn't wobble.
The proof of the pudding is where the bearing rides. Emery paper or crocus cloth in mild cases should clean it up. I had one on my OT Chevy wagon, bearing welded itself to the spindle. Cut it off mostly with an abrasive wheel, finished it with a chisel. I was able to save that spindle and make it to work by 10:30 too.
Cool thanks I have a couple rusty ones. The car was upside down for 50 years. I think I'll spray the front and rear axle with mmo and acetone for the next month or so before taking it apart.