Right. They have to burn them. That way each coin receives a greater percentage of the dividend. So it's good for bagholders, which is the whole point of the coin.
Yep, but we can't assume burning them will increase the valuation enough to make up for the 25 btc (or however much they'd spend) buying the coins in the first place. Simply reducing the number of coins should increase the valuation... but who knows how that could work out.
Well, considering they have the money to just leave up a buywall (or replenish the buywall whenever it gets dimished) that would buy up 100% of the coins in circulation, it would be an actual solid floor that could not be broken through no matter what, assuming the devs don't run. The valuation would go up if the investments they make generate money which would be paid at a greater rate per coin than if they did not burn any coins.
Also, the even greater point is the confidence it would create. Right now, people are selling at .00005 because they think it will go to zero.