rust is normal for any TJ exposed to wet/snowy/salty roads.
rust is also repairable.
rust on a TJ, if not too serious, can be a great way to talk the price down quite a bit.
as to whether or not the O.P.'s TJ is too far gone, there are not enough pix to tell, yet.
2002 Wrangler Sahara, all stock, 5-speed, Dana 44, dual tan tops, 2nd owner.
2008 Hemi Grand Cherokee Limited 4X4, Quadradrive II, original owner, 24,000 miles.