Its not all the interactive environments that I disagree with. Like the big rock overhang in Swen's playthrough, i like that. Its a natural way to interact with the environment. But dipping an item into lava is, IMO, too much. Again, I don't care too much about that because I can just ignore it. And if it turns into an issue by enemies getting too much of an advantage by using those things then I might change my mind.
I'm not sure your science is up to scratch. The lava ejected from a volcano is between 700-1200 C, while lava flowing from a volcano can be as cool as 300 C - not much higher than a pizza oven. In comparison, the temperature of a candle flame ranges from 800-1400 C. Even insanely hot "magic lava" could potentially ignite, but not incinerate, an arrow just by holding it above the source of heat.
Where my concern somewhat align with yours is over how this will impact the spells that similarly increase weapon damage and cause elemental or other extra damage. I agree that the emphasis should be placed on somewhat realistic environmental effects.