Hi Martin,
I’ll do my best to answer those questions.
With the parenting of the “stretch” bone – Spikey is correct. It should be parented to the Bottom control and stretch to either the MCH-Top or the Top control (maybe that is the cause of your confusion)
The damped track on the MCH bones and then overriding the transforms is just a trick to keep things visually aligned. It only works well when you DON’T need to rotate that control (in this situation) because then you could have a control with rotation on it, but it doesn’t visually rotate……and this would be a headache for an animator to see why their animation is weird.
Hope that makes sense.