It looks to me the timing belt housing is very dirty. There is so much dirt in the housing, that may have caused broken belt. Check make sure the lower cover is intact. If it is broken, replace it. The timing belt housing on my 96 Accord at 79k was clean, absolutely no dirt when I replaced the belt two years agao. The belt looked perfect to human eyes.
You can live with chipped pully, as long as it is not over unblanced, otherwise it will contribute lower engine shakes. You should have got that special pully tool.