The spell can be viewed as:
A) Big gaping hole in reality between two spots that is easy to move between and requires only movement, not conscious will to move through
B) A magical effect localized in the squares involved that allows movement by conscious will
People trying to use forced movement is advocating A.
The fact that the rift only affects creatures and implies conscious use ("can move") strongly suggests B.
Well, it must be noted that any time someone relies on interpretation of a wording, rather than the wording itself,
any conclusion that is drawn therefrom cannot be absolute. I posted my interpretation of what the rules seem to allow previously, and you have posted yours. Further, no matter how hard we each argue, we might as well be shouting into the wind (which is also why I had withdrawn from the fight previously); until and unless WotC makes an official clarification and/or errata, this one is clearly within the realm of DM fiat. As I noted before, YMMV.
Considering that B is actually more balanced, I suggest that we all agree that B is the proper way of looking at things, since the rule as intended is that it's not supposed to be an attack spell (reason that it's a Utility power and not an Encounter or Daily Attack power) and the rules as written strongly implies it.
Again, I don't want to make this fight any bigger, but it has to be noted that any time a non-developer/designer measures something against their personal standard of what is and is not "balanced" (an abstract concept comprised of standards that varies from player to player, with no functional universal meaning), it frankly means little. You can't run on inference in regards to the rules; it either functions one way or it functions another, and I could equal any amount of inference that you could posit; the DM at each table can make any necessary determinations in regards to the combat functionality of this ability.
My point is, and always has been, this is something that the rules
seem to allow. I acknowledged sticking points in the theory at every point, and I still think it's more likely that they're the result of an envisioned usage that we are going far beyond than it is to be a carefully and meticulously balanced functionality (were this the case, I suspect strongly that there would be additional rules notes tied into this spell; again, see Gate's wording from 3.5).
Now, just to make a counterpoint on the balancing of this ability (assuming that my falling loop trick works), note this math: the spell has a 50% chance to deal 0 damage, instead only knocking its target prone (since each iteration, plus the first, allows a saving throw to avoid falling further). It has a 25% chance to deal 2d10 damage, a 12.5% chance of dealing 4d10 damage, a 6.25% chance of dealing 6d10 damage, a 3.125% chance of dealing 8d10 damage, and only a 1.5625% chance of dealing the full 10d10 damage possible; the average damage of the trick, therefore, is going to be something on the order of 2.5d10 plus prone, which isn't exactly a gamebreaker. Like Steel Cascade (which, I might note, has already been shown to allow a PC to oneshot Orcus, the most powerful monster in the MM), it has the potential to deal a quite a lot of damage, but isn't actually that likely to achieve it without substantial manipulation.
I don't know why, but this remind me of a player trying to sneak attack with a Light spell, since you know, it's a touch spell and the FAQ says you can sneak attack with touch spells...
Hrmm... actually, I think that this is a poor example for you, since the rules for 3.5 (not just the FAQ) explicitly allow it; the PHB has a specific entry about sneak attack enabling based on touch-based sources that do not deal damage. In the case that the source ability deals no damage, sneak attack is still applied, if all normal sneak attack conditions are met, and its type is altered to match the type of the spell or ability that is enabling it (even if that spell or ability deals no damage whatsoever). For example, you can sneak attack with Targeting Ray (SpC), a ray spell whose only effect is to give subsequent bonuses to hit for your allies; the advantage of doing so is that it converts your Sneak Attack dice into untyped damage, that thereby bypasses pretty much all resistances and immunities (though your damage pool is going to likely be lower than it otherwise might). Using Light is kind of silly, though. You might as well just punch the guy and get your extra 1d3 unarmed nonlethal.
Regardless, shouting back and forth isn't really going to answer anyone else's questions, so unless anyone comes up with some compelling new argument for allowed or disallowed functionality on this trick based on the rules, I propose that we leave it lie at "Ask your DM if you want to do this."