That's what I'm thinkin'. [Data banks indicate that humanoid life form objects frequently drop the trailin' g on some words.] Check whether the rim has been flattened in that region. More importantly, check whether the sides have been spread apart. This will cause a significant thump when that part runs through the brake calipers during braking. The surface chips and dents will probably cause some noise or thumping during braking also.

Whether you can tolerate it depends on how you ride. For runnin' errands it is probably tolerable. For faster or longer road runs, probably not. If it was on any of my bikes, with the possible except of one, I'd likely replace it. But if you can't feel a problem, then just check the rim every so often.