The image is of the top of piston 4 and the cylinder wall in a Toyota 2AR-FE with 162,000 miles. All Toyota recommended maintenance was performed throughout the engine's life. I have the feeling those recommendations were written by marketing people and not the engineers.
Based on what the image shows, the engine needs a short block. Am I correct?
That's not great but are you sure its being burnt? Oil can go other places and I'd believe a blown head gasket over a bad block unless there was some real abuse going on.
I'd say so. That either looks like burning rather than just scouring, but the image quality isn't the greatest making it hard to tell. Burning suggests that something is leaking (head gasket or more than likely a piston ring), and let something other than combustion gases (and fuel) in there. If that's the case you might be able to salvage a block by having it machined, but that depends on whether or not there's enough material and other cylinders don't look similar. It also depends on how rare the engine is and whether a new or used/remanned engine is available for the same or a cheaper price.
Can't tell how deep that pitting or burning is. Don't know what the rest of the engine looks like. If it's got tar in it that started out as oil it probably is junk.
The recommendations are for how much maintenance you need to have anything covered under warranty. If it says 10K miles per oil change, it means 10k is the longest you can drive the vehicle between services before they will no longer cover things under warranty. You should always do regular scheduled maintenance more than is recommended, especially for oil changes.
Unfortunately, the endoscope I used does not take screenshots. So that was taken by my 15 year old with a mobile phone of the endoscope screen.
The car is a 2014 Camry LE made after the rule changes, so it has the electronics of the 2015 model year. I bought it with 7k on the odometer.
Oil changes were done by a Dealership until about 120,000 miles, when I switched over to a locally owned place that specializes in Toyotas. The dealership's own mechanics, two of them plus a CS person, all said not to do oil changes any shorter than what is in the manual. I tended to do them between 8 and 9K thinking the pure synthetic oil would be OK. I've not used synthetics in any of my previous automobiles and religiously did changes at 5k.
There is definitely vertical scoring and that area of the cylinder wall is shiny.
All 4 cylinders show the exact same pattern, although 4 is a little worse.
I've a few minor issues with this car, not mechanically related. I've replaced all 4 door locks once and one a second time. It's eating headlights now for some reason. The original headlights lasted for 130,000 miles and all the replacements die after about 5k of driving. I've used high end Sylvania and Philips. When replacing them I make sure I'm wearing nitrile gloves, on top of being sure nothing touches the glass, to make sure no oil gets on them. I may go with a lower line bulb thinking that the high end versions run too hot for the projector enclosure. I've also gone through every ground I can find on the car and cleaned it and made sure it's tight. Checking with a multimeter, the bulbs are getting proper voltage.
My wife had a 2003 Camry for 17 years and it is probably still on the road, she traded it 6 years ago. I bought this 2014 Camry hoping to drive it past 200k, but it will not be seeing that kind of mileage. Overall, my car has never felt as well built as my wife's 2003.
If that's scouring then there's not enough lubrication, or possibly because the engine is investing dusty air through the intake (bad filter/ not enough filter changes etc). Some scouring is normal over time, but once there's not enough material for the rings to create a good seal you'll have combustion problems. At that point the pistons can't squeeze the aerated fuel/air mixture hard enough to make it go boom and the engine will run badly. A machine shop could machine those cylinders and sleeve them but the camera is a relatively cheap car with an engine that's probably also fairly inexpensive (enough where having this kind of work done wouldn't necessarily be cost effective).
The reason you should change your oil regularly and more than recommended is because over time the filter material breaks down (not the oil), and can also circulate in the engine. Even if it doesn't break down it can clog with particulates from the oil (as oil heats up and cools down etc). Full synthetic is for turbo charged engines. It doesn't have a meaningful effect on the longevity of the engine to use synthetic in place of regular or synthetic blend oil.
All that said, for the scouring, it does depend on how deep the scouring is. If your engine is running rough, and this is the cause, you need a new engine. If not? I would look for other problems).
Is the engine leaking oil, have you had a tune up (did you change spark plugs and coils when you had the tube up), is your engine air filter clean or clogged. Is there a noticeable change in the amount of coolant in the reservoir (while the engine is cold).
It looks like the engine that's likely in your car is about $1300 used. These engines seem really really reliable. It'll cost more than that to have the block machined + removed and reinstalled. Might be worth it to buy a used or rebuilt engine if you can.
Short of popping the head, you aren't really going to know until you can get a better look that that camera and feel it. It might just need rings and a hone. IDK if anything more than that would be worth doing.