They've been asking a lot of feedback on the contents of the "demo". Stuff like "Do you like the setting?" and "What do you think of Agni?" aren't exactly common for something that shouldn't be a game. Maybe that sequence won't be in a game ever but I'm sure Agni and that world aren't going to stay in the demo.
Unlikely. The content for SoA would've had to clear TCL for Microsoft by the time LPL V was posted.
I don't think we're at the point yet where we're only distributing art assets via media and downloading the text on the launch date, though that would be a convenient way to buy yourself some extra time for development, provided you don't fall into the Ultima Online trap where you essentially ship a box with a CD-key that won't even work for two weeks.