This is an interesting Luger. Closeup pictures of the left, right, and top of the receiver would be useful in order to completely tell you what you have.
This gun should be a good shooter. I am sure you recognize that its condition removes it from the realm of prime collectibility. Having it reblued would certainly remove all remaining collecting consideration, and (depending on the skill and knowledge of the operator) probably physically alter the steel surface. It would not be worth the cost, in any case.
But here is a thought for you: if you want to improve the gun's superficial presentibility, consider cold blue. Remove any oil from the surface (do not otherwise prepare the surface in any fashion), and then apply cold blue to the bare steel patches. This will not damage the steel and can be easily removed.
This is heresy under most circumstances. It is something which I have never before recommended (and I expect stringent disagreement) and would not do myself, but honestly as a shooter it will not alter its value.
--Dwight
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