Alright, I'll admit what I said before was a little complex, so I'll simplify by providing an alternative explanation:
What I think AAE is; it is basically the effect of a temporary 'white hole' created by an extreme concentration of the Frozen Flame's energy. What does this mean? Consider how when enough matter congregates in a single area it forms a 'black hole'(singularity) and derivatively an event horizon; what I am theorizing is that the AAE is actually an anti-event horizon and anti-singularity, in that it 'moves'(hence elastic), visibly, an area of space-time instead of holding it in a singularity.
EDIT: After studying Lavos's powers and applying my
theory, Lavos tends to follow the 'Heaven' archetype in elemental control. Follow my reasoning(I'm going to use Thought's examples):
1. Lavos' ability to fly through space and land on earth undamaged
Flux: uses this component to generate an accurate travel arc through space.
2. The FF's effect on human evolution
Judgement: uses this component to create an aura of 'creation' radiation around 'himself' and the FF.
3. The power of Zeal
See previous.
4. Lavos' "Destruction rains from the heavens!" like attack that destroys Zeal and the Future
Judgement: uses this component to create a sort of Creation Cannon (see
Creation Cannon from Star Ocean: TtEoT;
see in action. And if I'm going to mention that I *have* to link this
one. BTW the attack that the 'dragon' uses at the end is rather reminiscent of Shadow(Chaotic) magic) effect used to ironically annihilate something.
5. The Time Portal in Magus' Castle
Not sure this was completely Lavos's fault--personally I feel this was due to Magus's Shadow(Chaos) magic breaking the dimensional membrane.
6. The Time Crash
I still hold that this was a dimensional reaction.
7. The splitting of the Dragon God
That was FATE 'using' the FF's powers to achieve its own ends. But I would say that the end effect is due to the Field component separating and containing the Dragon God in multiple components.
8. The sealing of the Dragon Gods
See previous.
9. The Healing of Serge
Judgement: uses this component to facilitate the effect of revival.
10. The realization of wishes (per the General Kid ending).
Judgement: uses this component to facilitate the creation or annihilation of an entity or scenario.
11. Possibly the melding of Lavos and Schala
ehh... possibly uses Seal component to 'bind' and contain the two entities into one.
12. Dragging Chronopolis into the past
I say that the FF created the 'extreme' amount of creation energy, using the Judgement component, causing a Time Error 'white hole',
launching Chronopolis back in time.
13. Destroying Crono
See 4.
14. Possibly creating spawn
See my Lavos--Cell analogy.
15. Possibly gathering genetic information
See my Lavos--Cell analogy.
16. Changing the R. Knife into the Masamune.
Judgment: uses this component to generate 'creation' radiation which is then absorbed by the Red Knife creating the Masamune.
17. Creating the Dreamspecies
Wasn't that Balthasar's or Melchior's doing?
18. Maybe the creation of the Pocket Dimension
Field: uses this component to create an isolated field of discontiguous space.