Primer does not treat or remove rust, unless they used one of the rust converter products. Looking at the pics, thats not rust converter, that's basic automotive type primer.
Dealing with rust: there are 500 to 600 threads on that topic already. I would suggest you search the forum and read all of the opinions. The same is true with touching up paint. They really buggered it up using so much primer, probably well beyond any small rust spots.
The problems with a full repaint are that you lose the originality of the bike, and all of its decal work, it is pretty costly to do right, and that is a series Paramount (made in Asia), so it does not have the value to merit that kind of investment. Paint looks good except where they went crazy with the primer.