Well one wheel would get more dust than the other. I've had pads wear down to the backing plate on one wheel and still be at the warning mark on the other.
However, with the burning smell, are the brakes new? How long have you had the car? They do burn a bit when new, but in your case, I'm willing to bet a seized capiler is the problem.
Not too hard to replace yourself, but while your in there you might as well change the pads and rotors if they got all the abuse from being seized
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