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Agreed, straightforward corrosion. It's the metal underneath, and it's making the finish flake off. Storage conditions didn't help, but there were almost certainly some issues before then which were simply made worse.
Options? The right processes could get off the old finish and clean them up reasonably well. Then they'll need refinishing of course. You might always see some evidence of their condition even under the new finish. And in my experience new powder coating doesn't stick the absolute greatest, so don't expect perfection.
I'd call them your winter wheels and run with the ugliness. At least until it gets to the tire bead and you start losing air pressure. Or of course replace them. You can repair them but at a cost of a new wheel. Not something you really do to 4 wheels, unless it's to get a crazy color for a show car. Usually the process is to repair a single wheel to match the others.
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