I spend a lot of time on the scope monitoring progress of honing--it's still fun for me to watch the process, but then again, I'm tickled every day when I check the temperature of my compost pile! Anyway, I have seen a lot of chunks come out of the edge of a corroded blade but I have never seen a crack like that is parallel to the edge. Great photo by the way. It's amazing that you caught it in that state.
I'm not expert at the benefits of multiple layers of tape, but if the metal is so flawed, I can't imagine that any degree of spine raising is going to alter the problem inherent in the blade.