Dented outer rocker panel...how to fix?

A quart of Bondo would fix that right up. Make sure you drill lots of holes in the patch area so the Bondo can get a GOOD grip on the area. Then prime and paint.
No! No! just kidding. Try pulling it out first. Nothing ventured, nothing gained. I have a stud welder from HF that works OK. I have gotten pretty good at welding and rest repair patching. I could probably cut out the dented area, form a patch (or possibly use the piece I cut out) and weld it in in about the same time it would take to pull it out. PLUS, while the area is open, clean it out and spray some kind of rust preventer in there. I would use a 3" pneumatic cut off wheel. They are about $20 at HF (Harbor Freight). Please keep us advised on how it comes out (pun intended).