I think that if you just clean it up and throw a set of bearings in it, it will blow up again shortly.
The bearing did not fail for no reason. It looked like that one got pretty hot. That usually indicates a lack of oil, spun or not.
After you figure out why it failed, then I would not be afraid to put in a set of bearings and see what happens. You don't have much to lose. The crank and at least one rod are probably shot already.
H motors are plentiful. If it blows up and tears a hole in the case, you can always find another one to rebuild.
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