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Depends on how the cables are supported. If they can follow along as the batteries move about, there shouldn't be a problem. Make it a habit to check the battery connections before cranking the engine.

Jonathan, dielectric compound (grease) serves a purpose when used, say on a light bulb socket prior to installation. The grease will allow metal to metal contact when the socket is installed (it's displaced) and protects the remaining surfaces from corrosion.

Clean it up and see if you still have a good seating surface. If not compromised/molten, it's a good chance the insides is still in good condition IMHO. If you can drill and tap about 1/2 inch into the cleaned up post, install a replacement.

IMHO, keep the terminals clean and tight. What makes an electrical connection good is a good metal to metal contact. Typical crimped terminals are "gas tight" and last for decades (with the correct crimping tool). Problem with lead-acid battery terminals are the relatively low clamping pressure...

The threads pull the contact together, the new post against the finished flat old surface. The threads don't have to carry any current for it to work.

A ruined battery post is not uncommon, I have melted my fair share over the years. They can be repaired, though. Get a replacement post from NAPA, drill, tap, install replacement and continue to use your battery. The best result, I would imagine, since I haven't done this, is to use a mold and...

A poor connection will increase the resistance, which will cause a dramatic increase in heat generation (=meltdown). A good connection at the battery should only have a few milliohms of resistance, causing only a few tenth of a voltage drop when the start motor is running. A side effect of a...