I do not have the books on hand, and I will assume you are the Games Master of your game in this answer.
Yes, flying creatures can be made "Prone". Even though they are not lying flat on the ground (since there is no ground), you can think in the line of the 3.5 rule:
A flying creature with the status of prone has lost control of flight. If it is not buyoant, it will begin falling to the ground. There is no rule on how fast it falls (if it is some parachute effect from its wings/wirlwind/etc). It can spend a move action to recover control (stop falling and losing the bonuses).
On the buyoant thing, Air elementals, beholders, any levitating monster, djinn and the like can be considered buyoant, even though they are heavier than air. For spells and effects, its a bit trickier, check the specific description. Also, if the creature is not buyoant but do not have a minimum forward speed, it can still fall, but won't fall as fast as a rock.
This creature ALSO changes position involuntarily. Melee opponents will have to spend move in order to keep melee range, BUT they probably can't keep up with the speed of a falling creature unless they are crazy enough to allow themselves to plummet also. I don't have the books here, so I am unsure if it should provoke an AoO.
Ranged attacks still suffer the penalty. The flying creature is flailing around trying to recover control of flight, so its harder to hit.
The prone/falling creature could use a feat or skill to recover the flight faster. If I was a flying character, I would like to regain my standing as a free action.
It is like the pixie in "Dust: an Elysian tail" said:
It is not because I can fly that I am not afraid of heights, you know? I can still fall.
I am unsure what you meant by burrow or teleport. If the creature can teleport while flying? probably yes, but there is the concentration issue. I think that for a falling landlubber (elf wizard had flight dispelled), I would call some sort of check to see if he keeps the cool enough to be able to cast.
Not related to D20 or M&M, but in an Earthdawn campaing, our windling warrior only fought either on the ground or at a height greater than one round's worth of falling. Better safe than with broken bones, I guess.
Finally, for M&M, I would go for what is more dramatic. Yes, you can apply the rules from D20-ish on that system, no problem.
There are two different things happening here: your movement speed being halved, and spending half your movement speed. These work differently, and the order matters. The end result is that the grappler can't move-drag after standing up from prone. Here's how it works:
You start with your full movement speed.
Let's use 60′ for the sake of example.
Standing up costs half your movement.
Your current speed is 60′, half of which is 30′. To stand up you spend 30′ of movement. Your speed is still 60′.
Dragging while grappling halves your movement speed. Your movement speed this round has now been reduced to exactly how much you've already spent, so you will have 0 feet of movement to spend.
Your current speed is 60′, but attempting to move-drag a grappled opponent changes it to 30′. You have already spent 30′ of movement and have zero feet left to spend.
The end result is that after standing up, you still have half your movement left, but as soon as you try to drag a grappled opponent you will have no movement left and remain where you are, so realistically you won't bother trying to drag that round. (You could still end the grapple and move your remaining half movement though, of course.)
Best Answer
No.
Rules Compendium page 213: