Thanks for all the input. I find the differing opinions of everyone here to be more than interesting. Reading this thread has varied from making me super depressed to super optimistic.
I haven't had much time to look at the car this week, but I'm actively thinking about what I'm going to do. Chrispoe, I think I fall into your category in that I really don't like the idea of letting it rot away and will figure out something to do.
It's odd--I don't notice any rust in the empty center of the rail. Smooth, flake-free metal. All the rust is pretty much contained between the outside cover (with the undercoating on it) and the innermost layer. That would be why I thought there was just a rail and a cover, as drawn in my diagram above. There's just, practically no evidence of the several layers of sheet there (at least on this damaged part of the rail).