Point #2 is incorrect. You can no longer buy Journeyman (time travel TV show that I enjoyed because, time travel) or Farscape The Peacekeeper Wars, but I still have those in my library to download and watch.
Nope. Because I hadn't downloaded a movie which was subsequently removed from the UK iTunes Store by the distributor - I had completely lost access to the movie. It's no longer in my library. No refunds. Nothing. If I only had an Apple TV device (and maybe an iPhone/iPad) and had a very large (> 512Gb) collection and little storage space on my iOS/iPadOS device(s) - how does Apple expect me to back everything up? And even then, if the title was available in 4K and/or had iTunes Extras, how do back those up? You can't.
Is iTunes a streaming service or downloads service? It essentially became a streaming service when Apple launched the Apple TV device. With 32Gb/64Gb of storage, there's definitely no scope to have large film or TV collections!
I have titles which aren't available to purchase that are still in my library (and haven't downloaded), but if the distributor decides to pull it from iTunes, I've lost it for good.
See:

Apple Responds To Disappearing iTunes Movie Purchases Issue
It’s complicated. Very complicated.

and
You know all those movies you bought from Apple? Um, well, think different: You didn't
As the licensing terms change, your 'purchase' can vanish
But this leads itself to the point that if a developer is kicked out of the App Store for violating the rules, or a developer removes a paid app from the App Store - are you entitled to a refund? If so, why doesn't that apply to iTunes content? Licensing terms, of course, are going to vary between them - but what gets me is that there is a lot of ambiguity to the terms of service in relation to iTunes movies and TV purchases.
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