Essentially yes.
Correct. Electricity flows through the windings on the rotor to create an electro-magnetic field.
When the solid state regulator was introduced to the entire Chrysler product line in 1970, they used a regulator that controlled the ground connection.
Think of the workings similar to the switch for the dome light. The dome light switches are all between the light and ground.
Your regulator controls the positive, as did most pre-70 regulators. When voltage was low, the points closed and current clowed through the spinning rotor creating a strong magnetic field. When voltage was high, the points fully opened and no current flowed, colapsing the magnetic field.
Yes. The regulator in the photo is an transistorized replacement for the pre-70 points type regulator. Mopar Performance sold them for many years. Most I had lasted a reasonably long time. If it dies, the one sold by FBO (on Ebay) looks promising. That's what I currently have as a backup.