yeah, that is definitely a massive chimple, but i don't see anything too serious in the new pics... it looks ugly, but it's not gonna do your fish any harm at this point.
i would just keep an eye on it and make sure it doesn't become infected. if you just moved him into a larger tank, that should probably help to curb some of the rubbing on the glass and it should start slowly looking better as long as the water is pristine... by the looks of it, there's a good chance that there will always be some sort of blemish there, but nothing too noticeable.