Help Me Learn about the Dynamic Blocksize

Hey guys, great to see all the love for Hijacking Bitcoin. The book has been out a week, and it's already a smash hit! We're finally breaking through the information controls... can you feel it?

I have recently heard about the dynamic blocksize limit, and I want to learn more about it. I thought others would like to learn too, so I'm putting together this thread for everybody, and I'll update it as I learn.

My current understanding is this:

a) There's a CHIP proposal to add a new blocksize limit in May.
b) This new limit will dynamically adjust upward and downward relative to usage.
c) The limit takes effect with blocks larger than 32mb.
d) The maximum rate the limit increases is a doubling per year.

Please correct me if any of those are wrong.

Here's a first list of questions, starting with the big picture.

1) What is the purpose of adding the new limit in? What are the problems being solved?

2) From my understanding, the current situation is that there's no hardcoded maximum blocksize limit and miners can set their own limits. In practice, there is a soft limit of 32mb, but this can be increased by the miners themselves. What is wrong with this situation?

3) What causes the limit to increase with the dynamic limit? Do we have to have full blocks in order for the maximum to raise, or does it start raising at 25%, 50%, etc?

4) Why only a doubling of the limit once a year? This would assume linear growth instead of exponential. What's the rationale versus, say, allowing for 5x or 10x each year?

5) Are full blocks considered acceptable? So, if blocks actually became consistently full, say for three days in a row, would that be considered a failure scenario?

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I have more questions, but I think that's a good Round One. Thank you guys!