Yes, it means the data is getting replicated to all the replica nodes (and not all the nodes in the system). Each piece of data only gets stored on a fixed number of nodes (which is equal to the replication factor).
Also, yes, the replicas will have “at most” the latest data, but we are not sure if the replication process has finished or not. Meaning if the data has been completely replicated to all the replicas yet. That is why we need to read from many nodes (in this case 3) to confirm that.
Your statement regarding hinted handoff is not completely right. Although the write could fail on the first node (or the coordinator could be down), but the replicas can still take the request. As mentioned in the “replication” lesson:
If a client cannot contact the coordinator node, it sends the request to a node holding a replica.
In short, W=1 means we need confirmation from any one node.
In Dynamo’s case, this gets even more interesting, because with Sloppy Quorum, the original replica nodes could all fail and Dynamo will store hints for each failed write. The client will not see the data until one of the replica nodes comes online again and the hinted handoff gets applied successfully.
We would suggest going through Cassandra’s replication process too, as it does not use Sloppy Quorum.