Like you and Craig (most of us actually that have made it this far in life) I just hurt at the thought of not being able to save a vintage tool or other piece of gear no matter how neglected or abused it's been.
Your axe head does have potential, at least that's what I see in the picture you posted, it is vintage so the chances are it's forged of decent steel, the bit looks like much of it's original shape is intact and in pretty good shape, and the poll could stand some file work but doesn't look too bad.
If it were mine I'd spend a little file time on it getting rid of most of the mushrooming around the poll and what ever dings I could smooth out on the rest of it, then step back and see what I'm left with, it's surprising what a little cleaning and reshaping can reveal, I've rescued a few decent axes and knives that at first glance looked like they were junk.
As far as the eye is concerned (it doesn't look that bad in the picture), if I could fit it with a handle I'd let it be, trying to open it up might result in a crack opening up, as long as it's not crushed, it should take a handle that's been whittled close to fitting to be forced into it, it may not look right or original when done (some folks would call it character) but it probably wouldn't affect it's performance.
And if you find it's too far gone, at least you tried, and please keep us in the loop, I for one am interested to learn if it can be saved or not.
