I have to admit I didn't read though this whole thread carefully. (I'm at work, sorry), but I did want to throw in my two cents for what it's worth.
I do stage hypnosis for entertainment, (not faith healing).

I've been hypnotizing people, on my own, not through classes or anything, for nearly 20 years.
I've stated my opinion about hypnosis in another hypnosis thread, (which is here:
http://www.internationalskeptics.com/forums/showthread.php?t=100185&page=1 ) but I'll restate it here. I believe that hypnosis is just like going to the movies. You sit there, focusing on the screen, listening to the sounds, but when something exciting happens, your heart pounds, you may sweat and you feel the emotions along with the main charactors in the movie.
So IMHO, I believe that faith healing is very much the same thing.
The mind is very good at fooling itself. It is incredibly easy to generate false memories, make people "feel good" (hell, I can make my girlfriend feel completely drunk on pez candies), even mask pain -- for a time. Especially if the subject desires the outcome.
Hypnosis is nothing magical or holy or anything like that. It's simply focus, relaxation and desire. It's something we do everyday: watching tv, going to the movies, driving, pondering a particular problem, etc.
I can see faith healers working the same way. When I see one heal someone, I can't help but wonder how long before the illness "comes back"? They take the people off the stage as quickly as possible and they are never heard from again.
(No offense meant to anyone of any faith. Just stating my observations).