It does sound like the eMMC has failed. There are some of us on 23.01 who have seen 1100 storage timeouts but they behave a bit differently than that (and I haven't seen them at all on 23.05).
While it is possible in theory to run from USB, in practice it's not that viable. Running live off a thumb drive will kill the thumb drive fast, they are not made to take constant writes. Last time I tried this it didn't even make it a month. Maybe an actual SSD in a USB enclosure might have a chance but it's debatable, given the 1100's pickiness with what it will/won't boot.
If you can find one that will boot from, You could go into the Marvell>> prompt and change the default bootcmd. Out of the box, it's set to bootcmd=run emmcboot to boot from eMMC. You'd need to run setenv bootcmd 'run usbboot' and then saveenv to make it boot from USB each time. But again, it's anyone's guess whether or not that would boot reliably.
To get that far you'd also need to manage to get the live/installed image onto a USB drive, and not the recovery installer.