I like to think of myself as well-informed when it comes to usage customs and grammar rules (and "rules"). But my knowledge of usage is not exhaustive, and I learn more every day, usually by accident, necessity, or both. I have no problem admitting this because, as the Laughing Saint, Philip Neri, taught, humility is healthy for us all. It's a delicate balance to strike---being humble and being an expert. Admitting that my knowledge isn't encyclopedic is one way to attempt such a balance, perhaps.
Not long ago, I overheard someone say that shall is only used with the first person. I scratched my head, assumed this person didn't know what he was talking about, and went about my merry way. That was foolish of me in many ways. First, I assumed that I knew more or better without evidence. That is, I didn't know this person's full background. Turns out, he teaches linguistics, so there was at least some chance that he was right or that he at least had a reason to say something that, to me, sounded utterly wrong. Second, I assumed that I had an exhaustive understanding of usage. I do not. No one does. Third, in assuming as much, I was giving up any chance at learning (a) what the truth is and either (b) why the custom/rule is as he said it is or (c) why he'd say it is if it's not. I was being lazy at best and self-righteous at worst.
So here I am, several weeks later, looking at someone else's use of shall and wondering "Was that guy right?" The question, once ignored, now nagged at me. I picked up my grammar books. No information there. That told me that this must be a usage issue, a matter of custom and/or culture. So I picked up my soon-to-be-erstwhile CMS 16th edition and turned to the usage section. Nothing under shall. Then I unshelved my Oxford American usage handbook, and lo and behold, clarity.
Here's the skinny on shall v. well, according to Bryan A. Gardner: "Grammarians formerly relied on [a] paradigm, which now has little utility." That paradigm is that when shall is used with the first person (i.e., I or we), it indicates futurity (i.e., that something will, indeed, happen in the future).
Example: I shall go to the store later today. But he will not.
However(!!), when shall is used with the second (you) or third person (i.e., he, she, it, or they), it connotes a command or promise, an obligation. It suddenly has what might be described in speech-act theory as illocutionary force---it does something in addition to meaning something.
Example: I will not agree to that contract, and if you wish to remain in business with me, you shall not, either.
Will indicates futurity for second and third person but not first. When used with first person, it has the illocutionary force of indicating a promise or command.
The distinction is very fine, highly contextual, and therefore easily disregarded. I'm not saying it's not a useful distinction; I'm saying I'm not surprised that people have stopped honoring it (did they ever? I do wonder).
Gardner includes this pertinent quip from "Professor Gustave Arit of the University of California":
The artificial distinction between shall and will to designate futurity is a superstition that has neither a basis in historical grammar nor the sound sanction of universal usage. It is a nineteenth-century affectation [that] certain grammarians have tried hard to establish and perpetuate. ... [T]hey have not succeeded.
Ouch. So, does the distinction exist? Sort of. Am I surprised that I hadn't happened upon it? No. I wouldn't fault any of my linguistics or English professors for not teaching it. Was the person whom I heard articulate the rule as easily dismissed as I thought? Well, no. He may only have had one side of a story that is increasingly not being told, but "wrong" is too strong. In the end, having the distinction in mind is useful, even if I continue to use shall to connote promises or commands and will to indicate futurity in a sort of blanket way. I won't go around correcting anyone who hangs on to this person-based paradigm.