Yeah I think it's just glazing from the oil. I've seen it in most 5000+ mile sleds. Some say it's from using synthetic oil but who knows its just the nature of the beast. As long as the cylinder is round, in spec, not cracked scratched or scored your in good shape. Check around the ports to make sure the nikasil isn't flaking and that's about all you can do. The nikasil is harder than the ring or the piston so it takes a hell of a lot to wear it out. I've seen these 700s well into 30,000km mark still in spec.