I would say it's marginal, I know that sounds like a cop out, you could try a dremel and smooth out the edges, grind them so they are sharp. The clearance of the wear ring looks excessive. Do you know if the wear ring is aftermarket or is the black rubber from the OEM just gone and we're looking at the fiberglass backing?
Personally if it were mine I would replace the wear ring and impeller, Solas is having a sale you should be able to get a new high performance impeller for around $200.00 or less. Use an OEM wear ring. But I don't want to tell you how to spend your money.
If you want to try filing down or dremel the impeller, check the balance of the impeller after you finish. You can get a balancer at the hardware store, they are made for balancing lawn mower blades.
Lou