Why Do Muslims Face The East When Praying?

Everyone looking towards the east, west, north and south may be looking towards the same direction but not the same geographical location.  

If the objective is to face Ka'aba, then everyone's east cannot be towards Ka'aba. For some it may be south east, North West etc.

Everyone on the same latitude as Ka'aba would be facing Ka'aba technically if they face east or west. Time would decrease as you head west from Ka'aba and fall again on the same line as you approach the eastern flank of Ka'aba.

For those on higher or lower longitude as Ka'aba, they can look east or west all they like and would not be facing (looking towards) Ka'aba.

Facing EAST ====>>                                                   <<==== Facing WEST

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Now questions: (please see direction of arrows above)

#1. If a muslim in North America faces the direction of Mecca, is he or she facing EAST or WEST

#2. If another Muslim in Australia faces the direction of Mecca, is he or she facing WEST or EAST

#3. What about yet another Muslim in South Africa facing the direction of Mecca, is he or she facing NORTH, SOUTH, or EAST

While you're on those, could you please explain for us what we should understand by the following seeming inconsistencies in Muhammad's lifestyle? (please, I said "seeming". . . until you find answers, thank you):

Abu-Dawud, Book 1, Number  0010 
Narrated Ma'qil ibn AbuMa'qil al-Asadi: The Apostle of Allah (peace_be_upon_him) has
forbidden us to face the two qiblahs at the time of urination or excretion.

Abu-Dawud, Book 1, Number  0013
Narrated Jabir ibn Abdullah: The Prophet of Allah (peace_be_upon_him) forbade us to face
the qiblah at the time of making water. (that is, "urinating" - my note)
Then I saw him facing it (qiblah) urinating or easing himself one year before his death.

What are we to understand from these two records in your holy books??  Thank you.