I'm no scientist, but I cook with a lot of booze, so I'll give this a shot.
1 - Yeah, the alcohol evaporates, it's got a lower boiling point than water, what's left behind is the esthers and other such flavour compounds. There may be a few other chemical changes in there, but I could never stay awake long enough in high school chemistry to tell you what they were.
2 - You'd have to fry up a lot of booze for it to have any kind of effect on you.
3 - Only spirits that are more than 100 proof (50% alcohol) can be lit on fire. I'm not qualified to give you a better answer than that.
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