Well, there's no guarantee that the system will halt.
That definitely seems pretty obvious. But, that defeats the whole purpose for detection from multi-bit error detection. If the system isn't immediately stopped because an uncorrectable MCE should be a sign that the system has recognized that things are totally insane and the system cannot really trust that it can do the right thing. In short, you've potentially got a major problem. Granted, not all MCEs necessarily should cause a panic. But, IMO (and all of the information I've read in the last 24-48 hours) says that it absolutely and unequivocally should.
Having a spectacularly failed module probably isn't helpful because you're not likely to be able to boot a system with it in; the moment of failure may have been a one-time window of opportunity that is lost now. However, it seems likely that a known-good DIMM could be instrumented to fail in a predictable manner.
In this situation, things don't seem to be going that way. The module seems to be in pretty bad shape, but as long as it is not in the first slot of the first memory bank, the system POSTs and boots up just fine. If you do put this bad stick in that one slot, the system won't complete a POST.
There's also a lot of definitions of "spectacularly failed module". Typically, when a RAM stick fails, far more than a single memory location fails (normally you have something where a particular path is shorted to ground or shorted to a voltage pin where a bunch of memory blocks are suddenly stuck in a particular state or a bunch of bits end up shorted together so they all keep whatever bit was last "written" (but sometimes this doesn't happen because if conditions are right the leakage of the electrons from the capacitors (memory locations are more like little capacitors) they'll end up as zeros instead of ones due to excessive leakage between refreshes. That's why I didn't want to see about buying one of those memory sticks that has a pushbutton to simulate a failure. The way in which the test is simulated really isn't what is commonly seen. Although for most purposes of simulating single-bit errors it is perfectly sufficient for the purposes of studying the effects.
Anyway, I have lots of homework to do, and no doubt once I have that bad stick of RAM in my grubby hands I'm sure quite a few people will want to see the hardware. This is all just very depressing to me though. :(