While that razor doesn't represent the perfect candidate for a restore I wouldn't say it couldn't shave again.
The determining factor will be how deep the rust is along the bevel area.
Also it looks like the stabilizer at the heel might need to be modified to make honing easier.
I have rescued razors that appeared to be in similar condition.
If you can't get the edge to shave smoothly after honing try rubing the edge lightly with a felt marker.
The marker doesn't have to have ink in it as its the felt tip that will work for you. If the edge feels rough or snags the felt tip then you know their are still microscopic chips or in your case maybe rust pockets, or both.
If the edge needs further refinment maybe try 4 or 5 thousand grit or even back to your bevel setter.
Some of these old blades were semi protected by having a layer of patina on them and if they were used later on the newly worked bevel would have the patina removed and was more easily rusted.
At any rate, if you get back to good solid metal in the bevel there is a very good chance that it will make a decent shaver.
You just need to decide how much time and effort you are willing to put into it.
Good luck and I hope you take the challenge. If nothing else you will learn a lot!