A friend of mine test rode a motorcycle once, came back complaining about the handling and then we noticed the rear tyre was like that, showing all the carcass. He wasn't best pleased.
No! If it's a lightweight tyre like a tub or "open tubular", peel off the tread and cut off the beads and you'd have the perfect material for patching the inside of a tyre.
Is it a Michelin as well John? From the condition of it I reckon I could have got a couple more K out of mine that I discarded at Easter. I remember reading about the old time pre-war racing cars where the 'breaker strip' would appear on the tyre meaning an emergency change was necessary before it blew out. Yours and my tyre remind me of this.