In a way, yes - they can deteriorate and become faulty/unreadable (disc rot). It's usually more common with old discs but there are people reporting "rotten" PS3, 360, Blu-Ray and even Wii U games, so I wouldn't rule it out of the question.
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The Catboy
Sounds like something is wrong with the system actually. But a dirty or damaged discs can cause issues with gameplay, as well a dirty laser can cause problems too. There are a number of things that can go wrong and often can be quite "fun" to troubleshoot.
And playing it through USB Loader GX gets me loud staticish noises