Hi, good questions.
The colors in the Colorramp can have an Alpha set to less than 1, (although I have never seen this done..) so you can create a greyscale Alpha map if you’d want (but there are easier ways to do that):

Not every grey output socket gives a value between 0 and 1, trivial example:

the output of the Multiply Node can obviously get bigger than 1
or:

The X, Y, and Z Locations can be anything. The Object and Material Index are non-negative integers.
A Musgrave Texture outputs values with an average of 0, so positive and negative numbers (possibly exceeding the -1 to 1 range:
