1) That is strange.. maybe a clean re-install of the game would help? It sounds like something may have gotten corrupt.
5) Being able to fall safely from heights is part of being a dragon slayer (people who attack flying creatures and can not take a fall don't last very long). Levitation strong enough to control descent is at least as reasonable as transforming into a dragon, which nobody seems to have a conceptual problem with, or huge rocks floating in the sky and forming flying fortresses.
