I believe by "erosion" you are talking about a process such as EDM. Keep in mind that EDM is a "slow" process, which generally implies an "expensive" process. Machining is a "fast" process.
I don't agree with only talking about the positive aspects. Discussion with others results in asking questions that one may not have thought of otherwise. Inventors tend to be overly focused on the merits of their own design and not think about the real world problems that they are going to encounter. If the discussion results in the inventor accounting for whatever the problem or issue is, and then making a better design, that's a good outcome. If the discussion results in the idea being abandoned, then perhaps saving someone the cost of building something that doesn't work can be a good thing, too ... Back to the matter at hand.
I don't know enough about surface finish achievable by EDM to state whether proper piston seal is possible without honing. I do know that a mirror finish will have poor results in terms of piston sealing, piston ring wear, etc. The crosshatch keeps just enough oil in the surface to lubricate the compression rings. Can this be achieved by a method other than honing? Perhaps, but honing is the way that I know how to do it. Some engines nowadays use a plated hard coating on top of an aluminum cylinder block, but even those are honed to get the proper surface finish for good ring sealing.
I know the original poster is dismissive of the effects of lubricant oil past the cylinder wall ports. I strongly encourage the original poster to study the experience of Detroit Diesel. In those engines, only the inlet ports were piston-ported (the exhaust used cam operated poppet valves in the head) and this means that theoretically (almost) all of the oil allowed to escape would go through the cylinder's combustion process ... but even this was not good enough for today's emission standards, and Detroit Diesel had to abandon their heritage of two-strokes and go to a four-stroke poppet-valve design. Some outboard boat motors and snowmobile engines and small scooters still use two-strokes but only in applications subject to less stringent emission regulation, and even those are going by the wayside. Even if you manage to get piston ring sealing to be as good as with a "cylindrical" piston engine, I still think this issue will come back to bite you. In your situation the exhaust is unavoidably piston ported, and you are going to get unburned oil out the exhaust EVEN IF you solve all of the other issues.
Regarding the wear issues, the upper "wear ridge" is seldom seen any more in a normal piston engine if proper maintenance has been done. It's not unusual to see a standard piston engine with 300,000 km or more and the original crosshatching (honing) on the cylinder wall is still there. Why solve an imaginary problem? Sure, a standard piston has side loading on it. They're designed to handle it. So what?