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Phenol-formaldehyde thermoset breaks down into phenol and formaldehyde. It degrades a lot faster than polyolefins.

Does it "break down" sufficiently that you'd want the result in your tap water?

PVA is biodegradable, I believe. But I suppose it depends which glue they use.

What happens to anything when you throw it away? It gets encapsulated in more garbage and stays there for basically ever.

capturing carbon?

Wood rots. It doesn't even take that long. Let's not pretend natural biodegradable materials are the same.

Not so much in a landfill.