My lips are still getting crusts. I have not been using balms. Not really seeing much of an improvement.
I bite off or scrub off the callouses and apply lots of witch hazel. Currently have crusty callouses peeling at certain spots.
The plan is to manage without balms and to get to a point where crusts don't form as much, or to get one tough layer of callous on the lips which is not followed by further growth/excretion of the white stuff underneath.
I might start using petroleum jelly and only cutting peeling bits off when they're ready to fall off, as suggested by Daniel Miller. Otherwise, the grey crusty lips I have right now just look ridiculous.