Avian influenza is generally a gastro intestinal virus in water birds, which means it is typically spread through contact with feces. In domestic poultry, it is spread through close contact and fomites (Objects contaminated by virus). It is an enveloped virus, so it does not survive that well in the environment (Most sources state 24-48 hours). However in water, as with wild waterfowl, it can persist for much longer. (http://www.cidrap.umn.edu/infectious-disease-topics/avian-influenza-bird-flu#overview&1-2)
There has never been a case in humans in the US, thankfully. AI has been around and media scares tend to play havoc in the industry. I think many people involved in the poultry industry are just hoping this will all blow over without the general media getting ahold of the story like the last time!
As for the depopulation zones, I will send an email to my advisor here are Cornell. She recently gave a talk here at an exotic animal symposium about the AI outbreak and this was in her slideshow. She's the vet in charge of the poultry extension office here and always has excellent info. I actually tried looking up the info on the USDA website, but they are pretty wishy washy on the whole protocol thing. As I understand it, it use to depend on whether the virus was high path or low path, but now they treat both of them the same way due to the viruses ability to mutate to high path in under a week. Several avian vets have said in their lectures that it is a 3 km depopulation zone with an additional 7 km surveillance zone for a total of a 10 km outbreak zone. I will check to be sure. I do know that there are several checks to be sure a test is truly a positive before culling takes place.
If I don't get back with the info right away, I apologize. I'm in the midst of a pretty busy block in my second year of vet school, but I should have some time this weekend to send an email!
It is spread by the spread of body fluids, which includes feces and nasal secretions etc. A sneeze in close quarters makes it very airborne. However, your point is well taken.
It has been transmitted to humans in other countries, but it proved to be benign. "The outbreak has raised concerns about risks to humans exposed to infected birds. Available data indicates that HPAI (H5N2) is able to infect humans, but to a very limited extent. It may cause conjunctivitis, or a mild respiratory illness."
I do not believe there has been "eradication zones". Until I see otherwise, I have to believe that it is just rumors, and the spread of misinformation. Every account that I have read mentioned quarantine zones and monitoring flocks within those zones.