I cannot answer all of your questions at this time, but I have removed the cell modem in a birch model and I can make calls using SIP:
I was testing the color balance on the built-in LED in that picture with another Librem 5.
When the kill switch is turned on, the modem is indistinguishable from being physically removed. This is a common use case, so I expect that the rest of the phone should work as normal. The cell modem’s firmware settings may be out of date if you ever put it back in, but maybe there will be a published procedure for fixing that at some point (currently you have to e-mail support to do this). Purism has said to put the kill switches in the off position (which is basically the on position in more basic terms) when updating the phone for this reason, but the updates seem to skip over the absent cell modem just fine.