I'm pretty sure that

"Items and spells will most likely be burned when used ==> one-time use"

Is not true. I think Aggroed was referring to the combining process, because immediately after saying there will be a burning mechanism he Says,

"...keep in mind, you have to go combine these things... you're going to have to make 11 of them if you want it to be max level."

Referring to a legendary sword.