Chew Socks,
In short, yes, I think it would be potentially dangerous to carry on using your battery like that. Once li-ion cells near end of life, they plate lithium metal onto the electrodes during charging (and over-charging). The metal can penetrate the separator and cause near instant self-discharge leading to the well known 'vent with flame' symptom. Personally, I would bother stripping the cells out of it either; I have done that with some newish batteries where one cell had gone but with a pack like yours it would be safest to simply dispose of it. The risk is obviously yours but take a look at some You Tube videos of laptop batteris on fire if you would like some incentive!
When it comes to lithium cells, most people here are reasonably cautious. If you take the cells out individually, you could put them on an analyser (or decent cell charger) but I certainly wouldn't use a cheap charger unless you really know what you are doing!
Andrew