I don't really know why "bad sectors are still bad after 40 years" is so surprising to me, but there you go.
So they are not worn out sectors, they were bad (or not there) from the start. You can't rub them out, because there is not enough magnetic flux or material to store data at that address.
You could buy disk packs with no bad sectors back then if you wanted that ("bit error free"). They cost extra but the premium wasn't all that high. Of course they could still develop bad sectors later.
This is all transparent from the host, maybe an occasional "wait a little, I'm kinda busy" signal to the controller. Same for flash, but it's way faster and more transparent, since the real map inside the flash controller is never linear, anyway.