James,
If you look on
www.356registry.com "356 talk" forum page 3 thread:
"detailed picture of head anyone have a replacement" you will see in red the photobucket listing you can open up. One of the photos shows the same picture as yours so you can get an impression of how good yours is.
This guy has a crack from the spark plug into the combustion chamber and asked about the possibilities of welding. You will see if you enlarge his photo some other casting marks apart from the crack.
In yours I see the valve seats are also affected with chipping!!. As you mention "Helicoiled " spark plug threads maybe (its difficult to see) its had a problem in the past and someone has tried to repair.
I would have thought though with the inlet tract though also very pockmarked from the casting this would not have been caused by other factors.
Providing the valves can seat properly and their heliocoil is okay could you not work on the head to remove the pitted marks to some degree. I doubt it would cause much effect on the running and on the inlet tract side might even improve gas flow.
The 356 registry photo shows what seems to be a smooth ( apart from some marks ) a true circular spherical formed combustion chamber. On one of your photos the chamber looks out of round almost as though material has been added in places. ( maybe the photo??)
Maybe PRS would give you a better idea of whats good or bad, they might lead you in the right direction as they will have seen many heads!!. I would ask them!
Best of luck
Roy