Specification for a new crankshaft is 1.022-1.023, so that is within the new-shaft range. My best second-hand crankshaft measures 1.0225", and it runs just like a new one.
You've effectively lost some surface area, which will slightly increase the wear rate. I can't tell which way up the crank is in the picture, but it looks as if the damage is concentrated on the top of the pin, 20-30 degrees past TDC, right where the maximum load occurs. That is unfortunate, but to be expected since it was that pressure that caused it to spall in the first place. My guess is that it will run as well as my best one, but may not last as long. On the other hand, an OHV Honda that is serviced properly and regularly lasts so long that no one but a contractor is likely to live long enough to find out.
