Post Mortem on a 360

It' would have to take a minimum hone and be able to reuse pistons to use that block with a sleeve
If I had to bore the whole thing and new pistons I'd start over too
I can do sleeves myself which does make a difference
The amount of rust in the cylinders would likely be deeper than a light hone, so I don't see much sense in re-using this block. If it were a numbers matching 340 6 pack I would be inclined to try saving it, otherwise start fresh.