That's not wear at the edges, those are chamfered edges to help keep the pad from chattering and squealing, oddly enough. Since the pads are unidirectional, meaning there is no right or left hand side, they chamfer both edges. Cheaper to produce that way.
I would say it looks like your pads and rotors are glazed over. You can try taking a wire-wheel to the pads to see if you can deglaze them. Depending on how bad it is, you might need to just buy new pads.
On the rotors you can deglaze them by using either a sanding disk (don't recommend) or one of those 3M scotchpad wheels on a die-grinder (do recommend). I would not attempt to turn the rotors as you really can't and new ones would be expensive for slotted/drilled.
Now the real question is why they glazed over. Cheap pads can do it, or stopping too hard, riding the brakes, or not bedding them in. Bottom line, the pads got too hot and baked a sort of crust over the top, called a glaze. Just like how ceramic tile is fired in a kiln to produce a hardened shiny glaze over the top.
If I were you, and the pads did not deglaze easily, I would just get new pads, deglaze the rotor, and make sure I bed them in properly. Ceramic are funny are bedding them in can take forever. Last ceramic pads I threw on took a good 500-miles to bed down. Until the pads have bedded in, you have to be somewhat gentle with your hard stops.
Here's a decent read on how to bed them in:
http://www.tirerack.com/brakes/tech/techpage.jsp?techid=85