Answer:
I fly through the air on small feathered wings, seeking out life and destroying all things.
I have rivers without water. Forests without trees. Mountains without rocks. Towns without houses.
I am a fire's best friend. When fat, my body fills with wind. When pushed to thin, through my nose I blow. Then you can watch the embers glow.
What has a spot and is very bright, is sometimes, red, white, blue, yellow or green and is often blinding.
Pirates put their booty in it.
You use it between your head and your toes, the more it works the thinner it grows.