After inspecting the cylinder, getting some feedback from others and contacting a local engine repair shop, there is some good news... The cylinders and heads are likely repairable! The cylinders will need to be bored out. Pistons will need to be replaced with new ones to fit the cylinders. Valves need to be replaced. Valve seats cleaned and honed.
Good news for someone wanting to rebuild her. Alas... I think the conclusion that she may be too much for me is settling in. She could be a great bike, but alas my time is limited. Maybe it is time for Vixen and I to part company.