How bad are the discs if the pads are like that 
or did you remove them with a hammer and screwdriver instead of spanners 
Discs are fine. Its the pads have disintegrated. Its almost as if instead of copper in the pad, they have put iron in, which has rusted.
Pad is about 50% worn, around 5mm of meat left.
Other side was suffering the same, ie, visible corrosion inside the pad causing the pad to break up, but not as extreme.