Suppose I have the line $2x+3y+w=0$ which contains the point $[1, -1, 1]$. After projective transformation given by multiplying by a matrix, it goes to infinite point $[1, -1, 0]$ which lies on the line $x+y+w =0$ at infinity. But the line at infinity is the line $w=0$ which contains the infinite point $[1, -1, 0]$, and we know that the ideal line (the line at infinity) is just the collection of ideal points (points at infinity).
My first question is that is it possible that $x+y+w =0$ is also treated as the ideal line since it contains the ideal point $[1, -1, 0]$?
My second question is that some websites say that in the projective plane, $w=0$ is the equation of a plane and some say that it is the equation of a line. Which one is right?
My final question is that on Wikipedia, it says that affine space is the complement of the hyperplane at infinity in the projective plane. But my understanding is that they should write the complement of the line at infinity (or $w=0$). Why did they write the hyperplane at infinity instead of the line at infinity?
The line $x + y + w = 0$ is not the line at infinity; the line at infinity is $w = 0$. You seem to think that because the point $[1, -1, 0]$ is on the line at infinity and the line $x + y + w = 0$, then the two lines must be the same; that is not the case. The line $x + y + w = 0$ contains a point at infinity, but it does not contain all of them (for example, $[1, 0, 0]$), whereas the line at infinity does. In fact, every line $ax + by + cz = 0$ (other than the line at infinity), intersects the line at infinity in exactly one point, namely $[b, -a, 0]$.
In the projective plane, the equation $w = 0$ is the line at infinity. However, one can also form $n$-dimensional projective space, in which case the equation $w = 0$ defines the hyperplane at infinity. There is no contradiction here; when $n = 2$, the two notions coincide, i.e. $2$-dimensional projective space is the projective plane, and a hyperplane in the projective plane is a line.
Similarly, the complement of the line at infinity of the projective plane is the affine plane. On the other hand, the complement of the hyperplane at infinity of $n$-dimensional projective space is the $n$-dimensional affine space. Again, when $n = 2$, the two notions coincide, i.e. the $2$-dimensional affine space is the affine plane.