Foolishness is one of Love ultimate cosmic lesson to undergo.
Its ok if you are naive, because like a lamb, you can be brought
back to safety lands with guidance. Foolishness in relationship
isn't like what it is in real life - blinded and totally shut from
assistance - they don't even feel the need to help for one.

As if face with face with the demon itself. She
would be mortally wounded by her own foolish flames and return
disfigured and maimed.
I) A big YES - she is betraying her current boyfriend and what she
is doing, she is consciously, willingly and on her own accord,
acting upon her decision. 
II) + III) She wants to linger with her past, at COST, without
gaining a single thing. She will only realise and learn only when
she have lost much and panic sinks in. I may not know her, but I am
sure she is either...
- Bad early enviromental influence - e.g. family whole life
quarrel, dad/mum flirt, exposure to ill-bearing environment
relating to love, relationship and sex. 
- She is inferior as a person. e.g. Poor outlook of life, not
positive as a note, attract partners that doesn't treat her well.

- (Astrology) possible affliction in 8th house.
P.S: As a friend, do what you must to save her. If all fail - let
experience take over the teaching instead. 
Cheers