I have seen a lot worse.
You can replace the mechanical points with a modern transistorized module that will fit under the original cover with a little work. I was looking at a write up on modifying a transistorized voltage regulator in Hemmings Muscle Machines car mag a few issues back. You can read it on line if you search Hemmings' web site.
Hemmings Muscle Machines mag is a great source for restoration info if you are into that sort of thing as their editors research each article rather than just pushing the trend in hot rod parts the way the other rags do. Of course if you subscribe to the old Petersen mags you know they have recently retired two of their car titles combing four of them as two titles since no one reads a paper mag any more (every one wanting free info off the web on their cell phone).
Of course a better solution (though it will definitely cost you points at a juried car show would be to replace the old original externally regulated 10SI alternator with a much newer CS (aka one wire) alternator. Once you pop off the serpentine pulley and slip on your V-belt pulley it will bolt up in place of your old alternator. Besides loosing unreliable mechanical points regulating your cars voltage, you get rock steady voltage at 105 Amps at idle with the newer CS alternator. The old SI only hit it's 36 or 63 Amp rated power level between 3200 and 4600 RPM. Outputting only a fraction of that power at idle incase you ever wondered why your head lights practically stopped working (dimming to a yellow glow) at a stop late at night.