I use medium thread-lock on all items that need to be removed at some point for maintenance,except spark plugs and exhausts .
I'm curious why so much rust.Denver's pretty dry.Do you commute with it?Let it drip dry after a rain or wash?How many miles?
I live in the Northeast(so all kinds of conditions) and on a 1/2 mile dirt road,so it can get muddy and I wash it with a hose.After disassembling last year I had very little rust.I did install an Edge-Guard that protects the shock and inner swingarm area while I had it apart,and mine looked at lot like yours when I pulled it apart.Do a search,if he still has any it would be a good time to install.