Yes, dry rot is not good. It`s caused by the interior being allowed to dry out and then moisture is free to breath in and out of the wood, They don`t get wet or damp, but do expand and contract with temperature and humidity changes. If left to sit, never reconditioned, the de-lamination just continues to spread.
Yours can be repaired but it`s a long, slow process of trial and error and the use of fine wood working or dental like tools, glues ,clamps and in your case with the BD, maybe re-ring removal.
The cracking and de-laminating may only go one or two plies deep, it`s a little easier to deal with but in all, if you let it go, you get vibrations or buzzing from playing them.
Steaming can release the grip the glue has around those areas so you can lift layers without breaking, or breaking, but you can get glue under there and clamp it in place.
These repairs have been done here in this section and detailed instructions with them, you have to search around and find someone that posted such repairs. read as many as you can ,get all the info, pluses and minuses, take your time and don`t rush. Gather everything you need, and if your will is there, you can do these repairs.
We have seen much worse come back together.