Ideally another collector can use the key tops. That'd be better than to see them turned into jewellery. Another option might be to use it as a garden ornament/piece of outdoor sculpture. :)
Fire, gasoline and AK-47s loaded with steelcore. It's the only honorable way.
Just get a big bucket and fill it with vinegar and put the machine in it.It will remove the rust.
I don't think Mr. E's method will work. I'd recommend Evapo-Rust (or a chemically identical solution), which is available on eBay. I doubt that it's a hopeless case. However, if it is, it is still a valuable source of thousands of parts. So if you have a foot on a shelf somewhere for it, stick it up there. Someday, someone may be very grateful that you saved the machine.
I'm a bit of a cockeyed optimist - I believe that just about any typewriter is fixable. If that isn't the case, I push for using all parts of the buffalo. The hundreds/thousands of parts are so valuable to anyone who tinkers with typewriters. I am always in need of teeny springs and screws.
Cambridge Typewriter might want it for parts.
I think I will pass on Ted's suggestion no matter how exciting it sounds. If I could ship it to California, I would give it to Mary just to see how she cleverly restored it. I am going to heed Richard and the others who spoke of the value of its parts. With this in mind, plan to cryogenically freeze this typewriter until a time when modern typewriter science can bring it back to life. I would also be glad to give it to a typospherian who happens to be driving through Vermont.