Thank you, I see the trenches area you are talking about so now I know when they need replaced. You are right there is plenty of material left in these pads. I think I learned something here.
About the defects on the upper pad. I believe I ran over a large nut or buckeye in the yard. Whatever did this is long gone so I can't be sure what it was. When I took the pads out nothing new fell out. And the grinding noise has continued on past the first time I removed the caliper and took a look and cleaned it a bit.
The gouges in the center area look deeper here to me than they look in the scan. One side feels rough and catches my finger when I slide it across it so some sandpaper may be in order. There is also a gouge near the left side edge that is not so visible in the scan. It's more of a hole though and not torn up.
If there were a rock stuck in it I could see it making that type of sound. Would the rough edges of the pads alone be catching on the rotor and making a metal grinding sound that loud? I'm thinking no, but I know nothing about the material they are made of. I'm gonna go check the area and floor again to be sure I didn't miss something falling out.