yes you can continue to ride that just fine, of course the wheel will not perform as smoothy as a fresh bearing surface but nothing should end up failing catastrophically if you pack with grease, the correct number of balls, and only plan on a few hundred miles.
yes rims are about done too....they will eventually split if you keep using them, and tire can explode catastrophically off the rim and jam in the frame or fork (rare to jam though, it should just flop around but not lock you up) and send you flying if it does....so I'd worry more about the rim actually than a lumpy hub bearing
yes rims are about done too....they will eventually split if you keep using them, and tire can explode catastrophically off the rim and jam in the frame or fork (rare to jam though, it should just flop around but not lock you up) and send you flying if it does....so I'd worry more about the rim actually than a lumpy hub bearing