If I cast Bonfire of the Damned and redirect the damage from the player to a planeswalker he or she controls, then none of the player's creatures will be dealt damage, right? I'm thinking because the card reads, "...and each creature that player controls," if the damage is not dealt to a player then the creatures will not die.
Not correct. The spell is still targeting the player and therefore the game can make perfectly good sense of "each creature he or she controls" - "he or she" is still the player the spell is targeting, not the Planeswalker it's dealing damage to. The damage redirection rule has nothing to do with targeting.
Jeff Heikkinen DCI Rules Advisor since Dec 25, 2011