The brake set in the pic looks outstanding! No grease contamination and no leaking wheel cylinder. And...all the hardware is present and nice, even the self-adjuster stuff! How rare to see one this nice!
The pitting looks like someone peened it with a hammer to roughen the surface...possible the hub slipped at some point in the past though the actual machined surface doesn't show signs of slipping or fretting corrosion from having been loose. Use nice clean mill file and lightly cut down any high spots.
The taper must be tight! That is an interference fit-type drive system. When you reinstall the hub, both surfaces should be clean and dry. Then seat the hub onto the taper with a dead hammer blow and then torque the nut. Make some witness marks on the nut and end of the axle if needed so that as you reach torque spec, you can then align the cotter pin holes. If you have to go past torque spec that is just fine, ya gotta align the holes!
You should not see any grease at all unless ya pull off the backing plate and the bearing/axle retainer. That is a good thing! That means the po did not scruu over the rear axle bearings and brakes by trying to pack 'em without removing the axle shafts! Some variations of th4e tapered hub axles actually had grease zerks behind the backing plates that allowed the application of a grease gun to the bearings...but that usually resulted in folks pumping the entire brake drum full of grease!
Then the bearing set is pulled out for service along with the axle. The passenger bearing retainer May have shims under the bearing/seal retainer, or it May have an adjuster nut, no telling which without looking. That is why ya service the driver side first and re-install the axle and tighten down the retainer/backing plate. The adjustment of the axle endplay is made for the passenger side.
Torque for that nut is 160>250ft./lbs. On the larger nut used on a tapered hub spicer 44 axle.
The drums are "swedged" to the wheel studs and hub if it's original see those tool marks around each stud where they come through the drum?? Looks like two dings made with a blunt chisel??
When ya knock or press the old studs out (which wastes 'em), then ya clean up those drum holes so the new studs will go right through. We explained this really well along with posting some alternative wheel studs in this thread:
http://www.forums.IHPartsAmerica.com/axle-tech-questions/2404-mystery-axle-noise.html