How does an ivoroid(or any type) fretboard/body binding help the guitar. Are bindings just for looks, and stability, or does it affect sound.  

Binding on the neck hides the fret ends and provides protection from chipping the finish. Binding on the body helps protect it from damage if it gets dinged. I don't know if anyone has ever studied the effects on tone. My guess is that it has no real effect on tone.

There are many subjective opinions, the general view is that the harder the wood the better the sound transfers or something.  But these are just what some people claims, there are no slid evidence.

Although it would seem that minor changes to guitars Do make alot of difference in tone sometimes.  I've seen near identical guitars that are quite different.