Is this engine in good condition?

There's a first for everything.

Did it not cross your mind to PAY for a vehicle inspection from a reputable mechanic who specializes in Hybrids, esp Prius? You lack sufficient auto knowledge to make an informed decision. Scary to think you will decide based on pictures of the engine compartment alone.

Try contacting member TampaPrius via PM (private message) function. At least he is in your State, and maybe nearby. If he is far away, he may know of a good mechanic near you.

You apparently have not heard of CarFax either. Its a service you pay for to see accident history. Its not 100%, but it is better than nothing, and they have a guarantee to buy back the car if something big was missed on their report. But you have to know what the details are.

Make the effort to educate yourself about cars and buying cars, esp used cars. Look at Edmunds, KBB (kelly blue book), Consumer Reports, as these sites have used car buying advice.

You can also goto Toyota.com or your local Toyora service dept, to see service and recall history. The VIN will be required.

EDIT: Crap, just realized you already purchased the car. Hope you didnt buy a salvaged or a car with problems to surface immediately.

 

It is basically impossible to discuss and engine's health just from engine bay photos. Unless there is e.g. a huge oily mess and a big hole in the side of the engine, any wear etc. isn't visible without taking the engine apart.

However - there are some things you can do to get an idea:
1) run the engine with the oil filler cap off and see how much air is pulsing in and out of the filler hole. There will be pulsing but if lots of air is flowing out then there is 'blow-by' which means either the breather pipes are blocked up (fairly easy to clean them) or the piston rings are worn (huge job, probably easier to fit new engine).
2) Pull the dipstick out and see what colour the oil is. If very dark, change it and the oil filter. After 50-100 miles, check the dipstick again. If the oil is darker than when it went in, the engine is dirty which probably means the oil hasn't been changed regularly enough. Don't use an oil/engine flush product but change the oil (and filter) every few hundred miles until it stays clean for longer.
3) Check for smoke out the exhaust when the engine starts from stone cold (i.e. been left standing overnight) and also under hard acceleration at high RPM.

Also inspect the water pump belt shown in your 4th photo. If it is cracking, replace it. It's a very easy job and the belt is not expensive.

 

The engine compartment looks great!