The used up fuel isn't contained in the same area as the reactor (it's up in the roof of the containment building IIRC). One of the exposions seems to have exposed this pond, which evaporated, or something... Anyway, I'm guessing that burning fuel rods without containment is very, very bad.One definitely doesn't want radioactive stuff to burn into the air.
As for actual effects, they are really difficult to predict in any meaningful way at this point.
Direct exposure doesn't happen from this type of contamination. The concentrations are too small, the isotopes of incorrect kind. People don't just burn up or stuff. Very few people have ever been affected in this way.
There are two major factors - inhalation and ingestion. The immediate problem is Iodine. Body stores Iodine in thyroid. If radioactive version enters body it accumulates there and stays in body, irradiating from inside. The counter to this is Iodine pills which saturate the thyroid so it doesn't absorb any more. Due to quick decay, Iodine stops being a problem in a few days.
Bigger problem is Caesium with half life of ~37 or so years. After being blasted into atmosphere it falls on earth where it's absorbed by plants. Plants are then eaten either by animals or people and they enter body this way. With adequate infrastructure, this can be contained by destroying affected plants and animals. The affected area in this case is considerably smaller even in worst case, in case of Chernobyl it was basically entire Europe. There are some other isotopes, but they typically aren't important.
The contaminated area however cannot be left alone. Just like TMI, a large surface area must be cleaned, mostly to prevent accumulation of these contaminants (water, erosion). And picking up and packing several square meters of land is big task. This is also the reason why US fleet retreated - there is no point in contaminating entire carrier. Even if minimal, regulation classifies that as radioactive material and must be disposed. Would be a shame to throw away a perfectly good carrier.
This is supposedly from Tokyo, 200km away. Geigers are not calibrated, but 20 is often normal background. Another chart I've seen is from KEK facilities some 100km S and they correlate with this. The peak is 10 times background and it settles at some 3 times. So far, both of these are perfectly in accordance with what has been reported about explosions.
Simple fact is, stuff is leaking into air and being near the fires is bad. But overall, the scale here is much lower than anything Chernobyl related. Back then, 3 days later, the geiger was 50-80 (vs. 20) at 4000km away for a week or until major rain. It was just bordering on where one could still keep up counting. The difference is that back then, the reactor core blew up in the air and rest of it melted in graphite fire. Here, even if breached or overheating, is still in one piece and at least mostly contained. The other positive is that there is mostly water around, so most of the fallout will end up in the ocean where it dillutes.
So far, the reports that were given are quite accurate. Similar to in nature to TMI, just bigger, but not of global scale that Chernobyl was.