Bike frames with even a hint of buckling ripple in these high-stress locations can be expected to have a greatly-reduced fatigue life, as the normal cyclic pushing and pulling (compression and tension) causes rippled tube walls to bend and distribute stresses in a very unfavorable way as compared to the undamaged structure.

I really don't understand why anyone would want to ride a frame with that ugly wort staring at them on every ride.

Flawed frames (like my '84 Trek 520 with it's earthquake-damaged top tube) are actually the most enjoyable for urban or semi-urban riding, because the rider can more freely secure the bike and go about one's business.

Nicer bikes, you might feel more time-limited in your off-bike routine, since there is so much more value that could be lost to a theft, and perhaps more motivation for said theft to occur.

Totally depends where you might want to park it, and how easy it is to find an inexpensive suitable replacement in your region.

Yeah, I get that for damaged paint or a dent. But that bulge is a reminder that the frame structure and geometry is compromised.

Yeah, I would feel uncomfortable seeing an aggressive or large rider hammering on it over rough surfaces for sure.

I've seen forward bent forks and steerers on low quality bikes abused by kids. Doing wheelies and landing hard, etc., but this doesn't seem to be the case.

Traveling in Asia, I have seen bikes with a much greater degree of damage used for many everyday tasks. They are not pristine examples by any stretch of the imagination, and are used as tools, transporting heavy loads or used as everyday transportation. In my estimation, these bikes undergo far more stress than any of us on BF's will ever put on our frames.
A bulge or a dent does not mean a scraped frame, yes, for some of us it is the end of life for the bike, for others it's continued use.
I agree the frame is not perfect, if I were to ride it, I would be cautious, but not as concerned as others might be.
People live and work with much less than we are accustomed to, at times, reading some responses to damage and end of usefulness, makes me realize just how privileged we are......
Again JM2C's Best, Ben

Maybe the bike was ridden into the back of a truck. (Hope I'm wrong.)