Best to fix rusted firewall?

I'm hoping that someone will have some ideas on how to best repair this.
I am restoring a 73 Dart Sport and other than the trunk and interior floors, there isn't much rust except for the firewall, cowl and passenger A-post. (I have bought 2 other donor cars and they both had way more rust than mine here in humid Miami).
Anyway, the lip(?) and the firewall immediately under it are badly rusted. Can I cut out the lip and fab some flat sheet metal to fill it in and then cover with a smooth panel.
Or does that lip give structural integrity to the firewall and cowl? I have a 72 Demon where one of the few good areas is the firewall. Could I cut above and below the lip all the way across and replace it in mine or will it be too hard to mig that lip? (I'm getting better at welding but I'm no expert!)
Thanks

Copy of Demon Firewall 004 Medium Web view.jpg

Demon Firewall 003 Medium Web view.jpg

Demon Firewall 007 Medium Web view.jpg