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[HelmsDerp]

Thank you, that's an excellent compact sheet

[HelmsDerp]

Multiple hybrid forms with different levels of TK

[HelmsDerp]

Even for less egregious examples if you're really worried about it just limit the possibilities by Availability. We already have a good abstracted mechanic for limiting access based on rarity/expense....

[HelmsDerp]

Given that the modifiers are listed under 'Extraordinary Equipment" and it states +1 per dot I'm confident that it's meant to be added to an item's normal values, not replace them. And yes, they have a dot value and are intended to be purchased as the merit.

As for armor the only guideline I could find is that subtle hedge shaping shifts add 1 to general and ballistic per success; based on that I say 1 of each per dot.