Greetings all - After lurking here for a while, I reckon it's time to contribute with some pictures & questions.

Background: My Jeep is a 2008 Liberty Sport, 6 Speed, 4x4. Bought it used in 2010 with 28k miles, and it's at about 65k now. It has spent its entire existence in Western PA. I was informed at the last inspection that it needed front brakes, and instead of paying the $450 that the local dealer wanted, decided to tackle it myself.
After getting the front end lifted up & the wheels off, this is the carnage that I was greeted with:








Needless to say, it definitely stops much better now that the new brakes are on. However, the amount of rust on the hubs & suspension bits are cause for concern.
The main questions I have are:
1) Is it safe to drive in this condition?
2) Does anybody else's look this bad?
3) Will Chrysler do anything about it?