Hi Alan. Yep, I know exactly who you are talking about. I recall that his name is Bernie Swetz, and, like you (and I), is also a CBA member. He shows up with a bunch of those old tools at the spring conference. By the way, are you going to the next one? I don't know if he is a smith, since sometimes the tools he advertises on craigslist are misnamed. Perhaps he makes a living at this work, and it might be nice to cut him a little slack. I am certain that he meets a lot of "tire-kickers" through craigslist. Or, on the list, they are called "flakes." I ran into him at Petaluma, and the anvils were priced kind of high, but maybe not so high as on craigslist. My striking partner bought a farriers anvil that was carried up from Southern California (lower prices down there). It was a farrier's anvil, and I would not pay even half what he did. But he has a real anvil now and I don't.
It is hard to see just how bad your anvil is without looking at all the edges. The one that is most visible in the photo is indeed bad. My feeling is that there must be at least one good edge somewhere on the anvil face, with a radius of no more than 3/16 of an inch. This is kind of like a pencil. Some people like a sharper edge somewhere, but I find that this just risks cold shuts, especially if a beginner is forging. A strong argument can be made for a 1/16 radius if you like to forge hammer wedges. Or, you can just spend an extra few minutes with a chisel and file.
If I were you, I would try using that anvil as is, and then find out what you can't do that you can on a better anvil. For example, I have a friend who has a 400 lb. anvil with very crisp sharp edges. I found out that I mess up and get cold shuts especially if I am really wailing away (which is tempting, on an anvil of that size). I convinced him to take an angle grinder to just an inch or so of that sharp edge, and our results improved tremendously. Also, worked more efficiently, since we could just hammer away with a 12 lb sledge.
As for forging that anvil top, I would be very careful hitting any forge weld in a shearing direction at forging heat. When Scott teaches you how to do a forge weld, take a quick heat up to orange, and hit your weld real hard right at the seam. I just did this last weekend, and I would have cried if I popped the face of an anvil as nice as the one in the above photo. I am not a good enough forge welder to work any of my welds, especially cross-wise, at much below a welding heat. Too risky.