As far as I know, balefire is treated as the world was a videogame, with definite objects; I see no other explanation over how can it affect a whole person and the thing he carries but not propagate further (such as to the ground, etc.)

It halts when it reaches an "object". If the balefire is very smaller than the object it will just destroy the touched part, if instead it is large enough, it will destroy the whole object (including parts of it not touched by the actual balefire).



This is never explained afaik, we can only assume that, like lasers, it does get less and less powerful on his way.


Don't cross the streams!

Rand and Moridin did that to kill Gozer.



All evidence is that it doesn't. Huge balefire creates ripples in creation itself, but I can't recall anything about wind (and I guess wind will happen if you instantly remove portions of air).


They are nice questions.