They do indeed wear out. Also suffer from accumulated dust, imperfect pressing, wow, the disk not being perfectly flat, the stylus pressing harder against the outside wall of the groove than the inner and are very susceptible to physical damage. The top photo looks like it shows some damage - the black blob off to the left of the stylus and what look like minute scratches.
Old 78rpm discs were really fragile, serious collectors tend to use a nylon or natural thorn styli and change it after playing one or two discs, a modern sapphire or diamond-tipped needle hacks them about dreadfully.
Vinyl requires very careful and skilled mastering to get the dynamics, transients and bass response into the range the format can physically cope with. It's a really specialist skill and far harder than mastering digital formats.