Actually RJ said that people killed by balefire do get reborn. Their souls are not taken out of the recycling bin. Balefire wipes out their last actions (in this case going back maybe an hour) and prevents the Dark One grabbing the soul at the point of death.

Since the people there had been reprogrammed by Graendel, Rand probably did them all a favor. They'll have a chance to be reborn free and not used as puppets.

However, Rand's action was a-moral. He knew that Ramshallan(?) was compelled by Graedel, but not whether or not she was still there. He killed these people without absolute positive proof that Graedel was there at the time of the strike. Luckily she was, but it could just as easily have been the other way.

It's a little like when we fight Al Qaida, the army bombs a civilian lodging because it has evidence that Bin Laden might be there. You don't know until after whether you murdered innocents for nothing or whether that action is justified even if you could prove the terrorists are there.

As for Egwene, she was perfectly justified, especially given her own experience as a damane, to do what she did, although I think she violated her vow that she follows the Three Oaths "in her heart" - for all she knew, the Seanchan came to collar, not kill, so by the Three Oaths she should not have used killing force.

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