I would agree with what you stated about rebuilding and not having to replace a liner if it checks out to be within tolerance, but the word, "worn", to me would mean out of tolerance, or at least a noticeable degree of wear, "worn out" would be an obvious typo, so maybe its just the language/choice of word, what they really meant was along what you said, however a worn liner and new rings, even with a honing, if the liner is beyond or very close to the specification for acceptable tolerance, I don't believe it would perform, could be problematic, ( you would know more than I about it) but say they meant what you said, lack of means to hone or etch the liner, new rings, liner is within tolerance, but has appreciable wear, and is difficult to get oil control, only then did this method become viable or was one employed for the stubborn to seat rings overhauls.
Its kind of interesting to consider how they arrived at doing this.
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