Depends on how permanent you want/need the fix to be. Anything but replacing the metal (unless it's just really superficial surface rust) is going to be a band-aid over a bullet hole. Some guys on here have done rigs with drill attachments to spin wire brushes for pipes or chimneys in their frame rails, or filled their frames with used motor oil. I generally just wire brush or grind off what I can and coat everything with rust converter, which slows it down quite a bit. that being said, my frame is a flaming turd that I'm limping the next few years until I'm not DDing my TJ and can stomach another full teardown for a frame swap. I'm mostly keeping it alive with patches gobbed onto it and very frequent rust removal and repainting, but yours looks much better than mine. Definitely drop that skid and try to keep those nutserts working, because when mine stripped out, I had to cut chunks out of the frame to weld nuts inside it (mrblaine's Black Magic Brakes sells a kit to fix them if the steel is good, but I couldn't use it because of how rusted and warped the inside of my frame was). Whatever you end up doing, getting to the issue sooner rather than later is the right idea. Rust doesn't sleep.