I don't like polystyrene either, especially when there's better options out there. It's a cheap option for aeration and drainage, yes. I can't tell much from the picture really but I don't think he looks that bad! Is he a Cattleya ? I rescued a few orchids from someone's yard waste...one being a little Cat. I think, and he looked WAY worse than that. He was a shriveled up little guy with the same mealy looking roots. He was all dried up so I watered him with compost tea frequently but always let him dry out between. He looks much better now. I think if you just provide supportive care, let those roots breathe and water only with a mister, they would pull through...maybe pout for a while and not bloom but I don't think they'll die. They look kinda young; do you know how old they are? Here's a current pic of my rescued Cat that looked way worse than yours....look, there's even a new leaf popping out :)