(...) they clear all their conditions (via infinite rolling and eventually getting surges) (...)
I think this explanation works only so much. For example, they discard their burning, but can't burn to death via infinite very poor rolling.
1. Invisibility potions also get cleared due to eventually rolling a surge.
Yes. I'd consider it a status condition, after all, so it should be cleared with all others.
2. A hero with Earth Pact recovers all wounds due to infinite turns.
3. If a hero has the Red Plate of Kellos, the entire party heals all wounds (due to infinite turns to pass it around).
Maybe that isn't such a bad idea either. Recently I've seen an encounter in a PbF where one hero repeatedly stunned the single remaining monster with Word of Vaal while another hero was regenerating using the Red Plate ... (Not that it worked — the poor hero who once in his life wanted to roll as low as possible rolled consistently nearly max damage — but a good try anyway )