Replacing severely rusted away gun steel is usually done with precision TIG (tungsten inert gas) or MIG (metal inert gas) welding. It is commonly done on museum quality restoration of historically significant guns.
Unfortunately, the heat from welding often warps barrels, and produces irregular hard/soft spots. Then too, the filled-in areas usually do not blue exactly as the base material, producing a mismatch. The cost of doing this welding may be prohibitive as well. Expert hand filing and polishing follows the welding. It is usually only a last resort on non-stuructural parts of receivers, trigger guards, levers, etc.
Electroplating with first copper and then nickle will bypass the bluing problems, but still does not solve the possible warpage and cost. It is possible to selectively plate with copper to fill in the pits, polish down level, and add the final nickle plate. It will require the services of a first-class plating shop and skilled operator.
These processes are not usually done on common shooting guns because of the cost factors involved.