Answers to @Winslow's questions:

Q: How can a 1:1 swap be enforced AND liquidity be maintained?  If the market were to net want to swap hybrid on one chain for another, and the exchange rate of 1:1 is imposed, where does the liquidity come from so that all those who want to swap can swap?
We create liquidity on 1:1 swaps by letting allocators earn a fee on every swarm transaction they are part of. So technically this makes a swap 1:0.99 for a user switching chains, with 0.01 going to the allocator swarm. We want to make sure swapping chains is always done for a reason, and supports the network. Bitcoin transactions work in a similar way, and also have a fee.

Q: What are the specific trades that can be made to instantiate the arbitrage?
For arbitrage, a trader would have to make use of an exchange in combination with Internet of Coins swaps. For instance, to arbitrage on HYBRID part ETH vs XCP, the traders sells HYBRID for ETH on EtherDelta, sends that to an exchange (centralized or decentralized), and trades it for XCP there. Then the trader sends it to the CounterParty DEX and buys HYBRID. The circle is complete. However, this will only be done in case of large price imbalance between chains. Otherwise, the arbitrage trader cannot make profit on this.

Q: How many HYBRID tokens will be added per new crypto?  If any, how are they to be sold and to whom do the revenues from the sales go?  Or maybe you mean no new HYBRID tokens will be issued, i.e. there will always be 7M?  But then how would other chains be included within IOC's weave-based DEX?
We don't just add HYBRID to every crypto. We add the chain system that have their own token/asset system. Per system this would be 1M tokens. We would make these fungible either by proof-of-burn or organizing a sale. Any additional proceeds would go to the NLnet foundation to make sure they are used for further development.
For a lot of cryptocurrencies, however, we can use methods next to HYBRID for swaps, like for example atomic transactions.

Q: What happens if less than 900k tokens are sold on a chain?  Are 1M still issued, and if so how are they allocated?
Most likely we would issue the last 100k by finding someone willing to fund them, or emit them in a slow sale. We will vote on that when we add another chain system.