homebrew is still new, and its not something that
every 360 can do.. most of them cant actually. This is most likely the reason for the not-so-mainstream homebrew market. Give it time.. As for the bad blocks, some are normal, just have to be remapped. If your dash is working though, it should be fine, doesnt make sense how its running with a bad flash though. but hey, its working right

Since the original NAND is gone, and you have no multiple identical copies, at this point the xboxs fate is in its own hands. Just make sure to keep a copy of your original dumps and the patched dump you flashed, just in case something goes wrong...