Pitting/Rusting Of Ironer "Shoe"
No, Faultless and or other cleaners for irons/ironers probably will have little to nil impact on that sort of damage. They are best used for removing starch and other soils from surfaces.
OTHO, rust is something that can start on a metal's surface then eat/work it's way downwards.
Because the ironer shoe will heat and get hot, the usual methods for treating rust with special chemicals and or paints aren't an option. Only option that *may* work is having the thing replated, but don't even know how you would go about it.
What can be done is after cleaning, smooth the surface down with the finest grade of steel wool or similar *GENTLE* abrasive, then apply ironer wax to the shoe. You want to remove as much rust as possible, while also protecting the surface from futher damage.
I'd ditch the old burlap and start with new, using the old as a pattern. The Ironrite service manual tells how to attach. Pads for the 25" roller Ironrite are easy to find on fleaBay and elsewhere.