Note that I have not actually seen an Elemental Champion in play. However, I have considered these questions.
Question #1 So can he simply keep reforging the weapon to get unlimited corruption? After forging, can he simply state, "I want to reforge" and get another 10 corruption? then do it again, and again, and again?
Essentially, yes. However, the character needs to sink DP into the appropriate crafting skill, and any failure destroys the weapon, so it's not without downside.
Questions #1.1 What happens to the weapon upon reforging? Does the weapon reset all of its obtained factor points?
I would say yes, definitely.
If during the initial forging, it gets 20 corruption points (basically 4 factor points) are these points immediately rolled to see what is obtained?
As written, yes.
Observation #2 Being corruption. The system indicates that if an entity is struck with an elemental weapon and it is corrupted, the being should make a RR in order to see if it gets corrupted.
Question #2.1 Does this mean that every time the elementalist casts a spell on a creature, hits the creature with an elemental weapon or any type of contact is made, say the elementalist that is corrupted herself simply walks up an hugs someone, is an RR made?? This would bog the already lengthy combat down. How do others handle this?
Other than Arcane Elementalist spells that are noted to cause True Elemental Poisoning just by general exposure, I would only check for corruption when damage is inflicted. For corrupted beings, they would need to be inflicting high or true elemental damage in some fashion (eg, a fire aura, wind buffet or ice breath); the simple fact that they have corruption would not be enough.
Observation #3 When an elemental alchemist forges a weapon, they get factor points to put into that weapon.
Question #3.1 Is that weapon bound (or are the effects bound) to that character? If not, and the alchemist was simply able to make these fantastic weapons at level 3, the game system would become greatly imbalanced by them making them and selling them all the time. Where is the governor on this?
There are rules for other characters using elemental weapons made through this process, so the weapon is definitely not meant to stop working in the hands of someone else.
Note that some weapons are going to end up with negative traits that make use of the item difficult, counterproductive or even suicidal for someone not bonded to the weapon. It may potentially take quite some time to forge and reforge a weapon until you get only useful traits, with the risk that the whole thing is destroyed with one bad roll. It's probably easier to craft than default alchemy, but far less reliable. Also, I'm not sure how many people want to go to the effort of becoming Elemental Champions just for the purposes of crafting and selling elemental weapons.
In my own current game, the main limiting factors are the actual elemental cults, who won't take too kindly to an elemental champion selling elemental weapons on the cheap.
If the inherent limits aren't enough, I'd do something like making a certain number of negative traits (1 in 3, for example) compulsory, so others are far less inclined to make use of the weapon.
Alternatively, you could rule that Forge Elemental Weapon does not actually put corruption in the weapon, it simply prepares the weapon to accept corruption from the Infuse Weapon spells. While not a literal reading of the rules, it's interesting that Infuse Weapon can only be used on a bonded weapon, and the only spell on the list that bonds a weapon is Forge Elemental Weapon. Perhaps they were actually intended to be used together? I'm actually leaning towards this ruling myself.
