Oswald is actually in some sort of trance, as the dialogue shows when you wake him up.
I've noticed that when the crash happens, the game makes a reflex save for everyone, and those with evasion usually don't take any damage. But they're still out cold.
As for the kid, well, Oswald DID say she has a very small head
Finally, the manual clearly says that Elves have darkvision, and that includes the Moon Elf. Perhaps this was an oversight (no puns intended!) in the code?
Nightowl2