The issues pictured will certainly affect the value of the bike but not the integrity, at least not for a while. The previous owner already destroyed most of the frame's value with the "custom" paint job and chrome unicrown fork (which I assume is not original.)
If you are planning to keep it, make sure it fits before putting a ton of effort into it.
If you are selling it, don't do anything unless you know what you're doing. You could easily make it worse. Sell it for what you can get and move on.