Actually, the alcohol is there because alcohol extracts flavors much differently than does water. It's a much more effective solvent, and as such the types of flavors you get with alcohol extractions are very different than what you find with water extractions. You will need to decide for yourself which is better. Alcohol based flavors are used every day in large scale chocolate manufacture.
No, the original extraction might have been by steam distillation or expression. While things like vanilla will often be extracted by alcohol or Co2.