Underwater breathing

This nitpick is valid except for point 3). Yes, it's true you can't inhale underwater, but you can exhale; thus you can 'talk' until you run out of breath (whether you can be understood is, of course, entirely another matter). Talking involves the exhalation of air, meaning that bubbles would indeed come from the mouth of someone talking underwater. The problem in this case is that Pinocchio not only does not have any air with which to speak, but also continues talking long after he would have run out of breath had he had any in the first place.

half true

if Pinocchio cannot breath (at all) then how can he talk at all? He is a block of wood then where does the sound come from when he talks? The magic that brough him to life created many pardoxes and this is one of them.