Dean:
Your hull looks no worse than mine when I flipped it, including some osmosis blisters (just not quite so many, luck me!). Pretty much do what GL suggests, including grinding out the osmosis blisters and giving them a few days to dry. Be careful sanding down to gelcoat, at least with an orbital sander, it's very easy to grind thru. Some tips and thoughts:
1) If you are dry-sailing (trailer), then Petit Easypoxy (the one part stuff) is great. I used Kirby Paints Topside paint (it's a hard enamel) and am very happy to so far (6 months). I used a heavily thinned down coat as primer, and then 2 "regular" (jsut enough thinner to help spreading) coats. Roll and tip...
2) Fill your cracks and gouges with thickened epoxy of some sort - see GL's suggestions. I know I"m crazy, but I used sanding dust (from sanding down the hull) to thicken my epoxy. A tip - once you put epoxy goo into a chip or crack, cover it over with some scotch tape and smooth it over. This will save you a lot of sanding later, you'll have a relatively smooth patch to sand down instead of runs and drips.
3) Look up the hairline crack and chip fix products from "MagicEzy". Stupid expensive - $20 for a 1/2 oz tube - but you don't need a lot and it works wonders in those annoying little cracks. The $20 is worth your time in NOT having to jam thicken goo down into hairline cracks. DON'T use my scotch tape trick on this stuff, it needs to air-dry. Again, I think the hairline product is worth it, the "9-second chip fix" is nice but you need a hairdryer/air gun to set it in 9 secs.
4) Get bunkers on your trailer ASAP. I built mine out of 2x4 pressure treated lumber [CORRECTION - I used 1x8's (top) screwed onto 1x6's (bottom) screwed to my bunker supports, GL below is right - wider the better!), outdoor carpet from a big box store (the one that begins with "L", the orange one doesnt have it), and stainless staples. I cut a $20 carpet into 8-inch wide strips, stapled from underneath to avoid scratching my hull, and used a double-layer of carpet - I had enough to do it and why not? Softer
Just cuz I'm crazy, I also sprayed my carpet down with silicon dry lubricant. I had a can of it floating around and it does make the carpet nice and slick, boat slides on/off like water on duck's ass.
5) As long as we're on the subject of trailers, Have you repacked your hubs yet? How's your launch/retrieval cable and winch? How are your trailer lights? Harbor Freight/Northen Tools is your friend here, they have lots of trailer replacement parts at a decent price.
6) My DS1 has the waterline molded in (two light lines). Does the DS2 have them? If not, use a laser level, the type that spins around to set a line. You can rent for HD, etc. The Waterline "spreads" out quite a bit at the stern, the flat part, since it's meant to be seen at an angle.
Assuming you don't live in a place that freezes hard, these are all winter projects. Go sailing! Nothing wrong with your hull that can't wait.