I took the liberty of posting two of your photos in larger format, to see the amount of corrosion detail. (if you copy the first image you see on your photo album, they will be small--probably because of a small file. If you double click then it will come up this size:
After studying these, I agree 100% with srbaum who has extensive experience with these motors. Also agree with T.R. Bauer that we really don't know what the future of the corrosion and extending of the crack
Any of the your suggested remedies will not really do a lot in the long run. These photos also bring up the condition of the water passages in this motor. I would pull the thermostat and examine what you can easily see. I would also suggest running the motor in a tank which has salt away added for at least getting up to temperature, and then running for 15 more minutes.
I have dealt with overheating issues on Powell several times, and these were usually when we had gone back into canyons or to the navigable head of the San Juan River, where there was a lot of debris. However we have had it happen in both Powell and other fresh water venues, where a fairly small debris field or grass will plug up the water intake. Stopping and reversing the motor cleared the debris off the lower unit.
Replace the lower unit.