Hi,
I think your better off doing the DD method, you can export and import a PG at a time (ceph-objectstore-tool)
But if the disk is failing a DD is probably your best method.
In case of hardware problems or broken sectors, I would recommend 'dd_rescue' instead of dd. It can handle broken sectors, automatic retries, skipping etc.
You will definitely need a second disk to rescue to.
Regards,
Burkhard