Mmmmmmm.....fire and alcohol haven't tried that technique except when BBQing red meat.
As far as charring wood. It can be used on fresh jins, shari and uro (hollow), as well as old wood. If you have dry rot that is so old and powdery, then whether you use charring, LS, or wood hardeners your still going to have a problem. That type of dry rot is beyond any fix, in fact it promotes rot. Best fix is to scrap until you hit firmer wood, then choose a method to seal.
I speak from experience on this. Being in the boat building business (in a previous life) I saw more than my fair share of wood hull boats that came through my shop needing ribs or part of a keel replaced.
The cry for mercy from our customers always rang out to find the best and cheapest way to do the repair. "IF" the structural piece in question had a minimum of rot we wood remove it. Clean the rot spots and then char it heavily with a blow torch to preserve it. Then scab in any spots that needed to fill out the rib. After 20 years in the business never saw a charred piece ever come back with the same problem.
Now there were the pieces that were beyond all hope, because of extensive rot, and a replacement was the only thing that worked. Really killed me when that happened, nothing more pitiful than seeing a grown man cry when he gets the bill.