Worst case – yep, collapse, lockup, accident etc.
More likely is the bearings just getting worse but still work. Are they cartridge bearings or cup and cone? If cartridge then the damage is all internal to the bearings which you replace anyway. If cup and cone then it’s new hub time.
A friend of mine let his rear go so far that when I replaced them for him tiny little dots fell out of the bearings that used to be the balls and the inner race just fell out. It was then hard to get the outer race out as there was nothing to “push” against. I ended up Dremelling the outer race in half to get it out.
The wheel was still spinning OK before replacement, and there was a mm or two’s worth of lateral play at the rim.
EDIT – do you have sufficient tools to be able to pop the seals off and add some grease to the bearings as a stop-gap?