First, it would be nice to stop making assumption, after reading your first line, i don't know if you are on drop or no drop side, but i think you are on hateful and toxic side for sure.
1/ Yes, including cap, hq ores, crafting material ... too.
2/ The point is it doesn't affect the gameplay at all. Tbh we all play game because we want to be superior than something in the end, kill a player make you feel you are superior than him, if you can't kill a player you go to kill a npc to make you feel you are superior than a npc, an if even a npc can kill you, well no drop here to save your pride. That why people play no drop games, such as lol, dota, cs... It's not about the drop, it's about you are superior than others AND being acknowledged by others. That's why there is ranking system and people taking screenshot, highlight, stuff... after killing things in any game.
Yes it can be abusable, but for your own pride, it gives you no advantage in game play, and if you abuse it, you are wasting your own time and make yourself a joke whem fighting others rankers.
3/ i don't state that you can trade 100 fingers to get a pa, if it can be applied, it should be balanced first. And if 1 finger = 50 caps it's nice to, in stead of cleaning 1 shit, you can go punching your alt for 1 finger and leave that shit for a noob. As 2 it should not an advantage in game play.
4/ with my experiance in s2, lvl 100 is when all builds at it't peak. So it's when you are pvp ready. When you are at lvl 100, at least you know how to shoot, take cover and basic stuff. If you want to stay at 99, stay, you are almost perfect too, just use your 100+ alt to grind and feed your 99 main. Well, is it weird?
5/ As an option to choose, i think everyone will be happy, if you want to lvling fast, turm drop on and get 15% more exp, if you want to fight, turn no drop on and have fun