In the U.S. it is 18 nm within 10 degrees, and 10 miles over 10 degrees to 35 degrees.
Same for ICAO, 10nm G/S and as you say for the LOC.
If you used rudder to correct LOC deviations in my airline you would not pass the check ride.
I have never understood this technique either. It looks smoother but the passengers must sense the lateral acceleration where as banking with aileron to correct is usually imperceptible in the cabin unless you look out of the window. Anyway, what you find is that guys who do this only do on the line and not in the sim.