So, in that context, the songs are basically DRM protected. You are restricted to playing those songs through the Spotify client. When the songs are cached, they are encrypted, so it would not be possible to remove them, and do with them as you please. Offline playlists are essentially a cached stream, and not individually stored songs. The offline playlists are not related to downloading either. You are correct in that Spotify Premium and downloading are not the same thing. I think I can answer all but one question you have.
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