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I don't understand the authors confusion and outstanding question as he answers them in the middle of his queries.

#2 Peter Moore provided a response he just wanted dirt for hits.

#3 You will need to verify your subscription to the service to access your downloadable games so you can play offline. I think what this will be is like a separate dashboard app, the same as Netflix. So you need to sign in to access the app or games downloaded in it thus verifying your account. It wont be like you download the full game independently from the marketplace and then go rogue and have access to it forever.

The final question he has is answered very clearly. The saved data is on your Xbox, its very clear how it is stored and accessed.

Seems like a cool service if they add a lot of great standalone non-yearly type of games from their catalog or for people who missed out on a bunch of titles in the future. Works identical to PS+ service which is great, in fact if they keep everything in the vault as they currently intend and keep adding its even better in terms of access but lacks diversity.