Then they typically write the bits to multiple locations or an entire section of the drive is maintained for parity information, sort of like an on-disk RAID5 setup where the individual blocks of NAND can be though of as "disks". For example, a 120GB drive typically has something like 150-160GB of storage space on the disk. This is not unlike what spindle disks do with a large section of disk not allocated to the format operation and kept behind for failed sectors that are re-allocated by the controller.
So all that work and the failure rates are still too high for comfort. It's really surprising to me and suggests that all of this needs more baking time.
I have no idea what the failure rates are in lower-end drives like the Kingstons and other drives that are likely rebranded garbage. I imagine it's not any better :)
That, and you never own a MacBook Air more than a couple years, because Steve Says To Buy A New One Then.
Flash memories use all kinds of electronics to ameliorate this problem, but in the end most they can do is try to equalize the number of writes each cell experiences, which results in the drive working at close to its full capacity for as long as possible but then failing very quickly afterwards.
And no you would not be able to read from it. When a flash cell wears off the ability to read it degrades or disappears. Depending on the memory you still may be able to recover the data using ECC or the like, but this ability tends to disappear as large numbers of cells start dying.