If the rings will set fine without honing I'll probably go that route and just do a good cleanup.
The engine was rebuilt by the guy I bought it from and he put in Wisco forged pistons. I've owned the sled about 6-7 years and in that time the previous owner died, or else I'd just ask him what he did. I'm replacing the crank seals anyway because I know everyone recommends it, plus I need to flush the crankcase. As for why it burned down, I can think of numerous reasons. First of all there was some old gas in the tank and even the new gas was 87 or 89 octane. Also, we somehow lost the air box and had been running that way for some time. This probably made it run lean or allowed a jet to freeze in the carb overnight (mikuni). The MAG side piston has a hole burnt right in the middle, and when it went it took a good chunk off the bottom of the spark plug.