Besides, it's not just Min, Nynaeve also indicates that she believes killing those people with balefire is worse than killing them otherwise. This, in response to Rand claiming to have done them a 'favor' and that he wishes the same could be done to him. And, as we know from his storyline spoilers (I've finished the book by now ) Rand clearly sees his cycle of rebirth as a source of torture, and wishes to be rid of it.

Of course, you could be right in that this is just the characters' misguided interpretation, and I'll choose to take it this way, because to do otherwise would be to accept a logical impossibility and would defy Word of God itself (if balefire completely destroys the soul, it doesn't matter how much balefire was used for the purposes of Shai'tan's reincarnation, and we know he can reincarnate if a small amount was used, which is the source of the Be'lal reincarnated theories) but the passage is still disconcerting and gives off the wrong impression.