Yup, I got all the smelling fire dialogue way too early when standing too close to fire could still kill my 7hp Tav. Waukeen's Rest haunted me for the rest of the game with everything useful I figured out that can extinguish flames, like throwing water barrels. I spent some of my first games in Act I just exploring, as I was still waiting for friends to join a multiplayer campaign that never happened.
Cheat code for fires: Ray of Frost. Any cold damage applied to a fire surface extinguishes ALL of it directly connected to the spot you applied cold damage to. I always have someone in the team that can cast it when looting the area.
It's also a bit of a lifesaver when dealing with a certain "damsel" in distress that's tied to some train tracks in the Lower City. .