Hi Ric,
How bad are they? Is it just the tips, or are the fasteners compromised? If the former, you can cut off the first 1/4" and glue in little tips. It will look good from above, and won't compromise the strength. If the ribs are split, but otherwise ok, you may be able to work epoxy into the splits and put a small clamp on the edges to pull the rib tight. How well you can get the splits to close up will determine the appearance when you are done.
Should you choose to scarf them all (and what a lot of work that would be!), keep the inboard edge of the scarf as close to the inwale as possible, and angel the scarf outward and downward. This will keep the visible scarf line tucked up under the rail where you won't see it from inside the canoe. If you can get a minimum of an 8:1 scarf (e.g. 2 1/2" for a 5/16" thick rib), you will theoretically have plenty of strength, the trick is to avoid hard spots, especially if the ribs have curvature coming to the rail. Your scarf angles on both pieces have to be dead on. Even though you theoretically have enough strength in the scarf, I worry about doing this to every rib in the canoe... seems to me it would set up a weak point in a major structural part of the canoe. Maybe someone who has done this can report on the results.
If you opt to cut the canoe down, try to keep the minumum depth to no less than 11" and preferably more. As you cut it down, pay attention to where the old fastener holes are, so they don't show when you are done.
Dan