Nah, that frame is toast as far as aesthetics go. Full top tube replacement. Or maybe lucky with a very experienced frame builder who can roll and hammer most of it out. Otherwise that area will always look off if you fill and repaint or try and pull it.
Replacing the TT seems a bit harsh Frame looks pretty rust free. The old handlbar ding TT is so avoidable Im OCD about protecting frames from that during transport. As an ex trade man you learn to move bikes through tight spaces balancing on the back wheel and to avoid damaging customers bikes in for repair. Nothing more annoying that a grease monkey scratching/dinging up your P&J then denying it. Hell, I do a full car vid every time I take it in for work