Sheephunter, I basically agree with your idea of how wounding ballistics works, except in the case of one detail. You've repeatedly said that energy can ONLY be transferred into heat, and that's not true. Energy can be transferred into all sorts of other forms of energy, heat being only one of them. The energy can also be transferred into, for example, mechanical energy, or sound.
If energy could ONLY be transferred into heat, then the potential energy that is released by burning the gasoline in your truck would just heat the truck up until it's red hot, but it could never drive anywhere. In reality, some of the energy becomes heat, some becomes noise, some becomes mechanical energy that is harnessed so that you can drive, etc.
Similarly, when you fire a bullet in the chamber, the bullet heats up (heat) both from the heat of the chemical reaction and the friction of the barrel. But it is also accelerated (mechanical).
When the bullet strikes the target, it doesn't kill the animal by turning its energy into heat, although this would happen to a small degree as a byproduct, just as it did in the last two examples. I think that once again it is the mechanical energy transfer that does the killing, because the bullet tears, crushes, and displaces tissue, thereby destroying said vital organ tissue. The tissue is accelerated from being stationary, and moved by the bullets passage, exhibiting energy transfer just as one pool que ball imparts energy into another, moving it by striking it. It's not a question of friction, but of one mass physically displacing or impacting, or otherwise destroying another. If I rub my foot against the floor, it causes friction and generates some heat, but leaves the floor basically unaffected. If I were to smash an object through the floor, that's another matter entirely!
I don't know if that made sense, but I hope so :S
I'm off to bed so I won't be able to respond today at least.
Cheers!
Red