[Strider]

I'll try to answer some of your questions...

1.
It's abstracted on movement obviously, so what is considered to happen is that the fleets pass each on the open sea, without seeing each other. Not sure what may have occurred with the convoy, unless there was some factor that prevented it from making it to the island you intended, so it stopped before then. True, you have to 'control' an island node to pass through it, but this is for gameplay, not that ships meet up with each other. Currently, there is no meeting at sea, unless both sides go for the same island, then the meeting is considered at sea (other than invasions), not on the island itself, so to speak.

2.
A. When your ships take damage in a battle, they may be unable to disengage when you want them to.
B. I don't think battleships (by themselves) are working as intended.
Docked ships are sitting-ducks. They don't fight, and they don't add their factor to Required Patrols.
C. The CE factor is suppose to have an abstract effect on everything...speed, guns, pilots, hits, damage, etc. Torpedo attacks should only be occurring once per day.

3.
A. No. No screens for that type of info.
B. AI can't play PBEM. You could use it to play 'hotseat', but that wouldn't be the same as what you're asking.