I had some spare hands that had corrosion on them. I polished them with fine diamond suspension (1 micron I think) on a rotating disc flat lap and came up with a great surface on the metal. The black paint in the centre of the hand was lost, but was easy to replace. If the part is rough, its worth a shot.
I vote curtain #3
Many if not most vintage watches will show some oxidation on the hands- but usually I cannot see it on the wrist. Maybe its my aging eyes. And youre not running around with a loupe I hope.