That's peening of the bearing race. Most likely a combination of under-oiling/lack of oil changes and excessive low rev lugging of the engine causing it to thump against the bearing race. People like to thump about on them at low revs in a high gear but there engines should really be revved, this is why. I have one just like it.
Removing the bearings is easy. Just remove the seals and circlips and put the crankcases either on top of the stove or in the oven. Once hot they will either fall out on their own or you can pick up the whole thing with some thick gloves on and tap it flat against a wooden surface and they will fall out.
In terms of the fit on the shaft, all depends on if it's the shaft that's excessively worn or the inner race that's a poor fit. I'd clean it up with some scotchbrite. Looks like it may have spun slightly? Measuring it with a micrometer would be the ideal. Or just seeing how the new bearing fits, the old one clearly had a hard paper round. Using a bearing fit compound might also be an option if it's looser than you are happy with but doesn't have excessive play.
Replacing the shaft is a bigger job, if you are going to split and reassemble the crank, you then want to consider if you want to do other things while you have it apart. Do you want to swap out the floating bush? Steel conrod? Needle roller big end? How does the cost of doing the work compare to a service exchange?