Firstly, condition of cells within battery is also physical condition. Unless you consider chemistry not being physical, which would be.. unconventional ideology.
What you can do with damaged battery:
1. You can use the battery for something less demanding that high power motors - ie. power bank.
3. You can get discrete components form the PCB, for parts.
4. Often only 1 or 2 cells are damaged. From 2 batteries, you can create one working one, if you're careful enough to not trigger failure mode in battery gauge controller.
5. You can connect the PCB to PC and start brute-forcing the lock key of the battery gauge controller chip. That is the chip which disables the battery if it thinks it's unusable/unsafe. The key is same for every Ph3 battery (and yes, I know some people did that and they do have the key).
6. If you have battery gauge controller chip key, you can replace the cells, reset the control board, and the battery will work as new (this is what we call refurbishing). Cells are priced circa 1/4 of DJI prices.