Thanks @mchwierut ! Yes one the issues writing posts for new users is they don't have a lot of power, but it's cool, I really appreciate your upvote and your thoughtful reply! As to your questions....

You are correct, the STEEM "doubling" is paid out in steem power. This is one of the more interesting aspects of the system, nobody can dump all at once and the inflation is spread out by the need to power down over two years.

On your second question I am not sure. However, my best guess is that you do NOT get more SP for being a SP holder for the amount that is powering down.