I think that if you just clean it up and throw a set of bearings in it, it will blow up again shortly.
The bearing did not fail for no reason. It looked like that one got pretty hot. That usually indicates a lack of oil, spun or not.
After you figure out why it failed, then I would not be afraid to put in a set of bearings and see what happens. You don't have much to lose. The crank and at least one rod are probably shot already.
H motors are plentiful. If it blows up and tears a hole in the case, you can always find another one to rebuild.
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Today's Featured Article - The Day Mom Drove the 8N - by Brian Browning. My Dad was wanting to put in a garden but couldn't operate the 8N and handle the old horse drawn plow he had found and rigged up to use with the tractor. Well, he decided to go get Mom out of the house and have her drive the tractor while he walked behind the plow. You got to understand that while my Mom is a hard worker who will always help whenever she can... she had never operated farm machinery before that day. Dad got her out there, explained how the clutch was the same as in our o
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