Those thin strands are what's left of dead roots. They are of no value to the plant, so can be safely removed.
That phal, as it stands, is in really poor shape, and is definitely ready for the sphag-n-bag treatment, but before doing that, get any traces of cinnamon off of the "trunk" and those two remaining old roots. I see nothing indicating that rot is an issue, and the cinnamon can discourage root growth.
Thanks for all the replies. I have removed the thin white roots and placed it in a one gallon ziplock bag(just fits the whole plant) with a slight opening for the last two days with which appears to be no change. I would have replied earlier but it seems it does not continue instant notification until you login and visit the thread.