This means flashing was not even tried and it failed on remounting initfs read only. Looks like mount command failed. there is
mount -o remount,ro /dev/mtdblock3 /mnt/initfs || return 1
line so it aborts if mount fails (it wouldn't be safe to continue)

Try to run just mount in command line as root (as above or just mount without parameters), does it work? Check if you didn't upgrade to busybox-sdk from bora repository - this is big NO NO as it has mount disabled. Maybe application manager dit it to you by mistake. check via dpkg -l | grep busybox

Most probably initfs is not corrupted, just rootfs :-)