Sam,
I know that many here on the Luger forum do not appreciate restored guns; I am not one of them. I do expect that restored gun be identified as such and priced accordingly. That said, your LP08 would be a perfect candidate for restoration. Generally guns that are chrome plated are protected from rust and pitting better than blued guns. The plating can be stripped without metal loss and parts chemically clean. It's then ready for Rust Bluing without having to go through a buffing process. I have a Navy Luger that was plated then restored, if you get a competent restorer who understands the Rust Blue process you can get an exceptional restoration. I would only do this if you can establish that the gun was chrome plated after it came to the US (most likely). If the gun was pitted before it was plated then the pits will still be there when the chrome is removed, but it doesn't look like yours was in bad shape before the plating job. You should be okay. This would put the Luger back to something more representative of what it was when it went to war. There is a constant debate amongst collectors as to whether restored guns should be included in the collector category, I can't answer that, but I do believe they have tremendous potential to be included some day, as pristine originals become harder to find.
Yours is a nice heirloom under any circumstances, and worth keeping.
Just my 2 cents
Bob M.