Let's make another example:
You have three user accounts on your Mac. All three users use the same system files but everyone has it's own home folder. So macOS gives every user its own individual home folder which is stored in /Users.
And now comes the part where user rights management comes in. Every user can only access its own home folder (User1 can access /Users/User1 but can't access /Users/User2 or /User/User3). That's because it does not have read and write access on these folders. Let's take a look at the root user. The root user is the user who has every right. That's why root can access all of these folders. But this user rights management is only there to manage the rights across the system itself. It's not suppose to keep users from other systems out. it only manages the users within the system and not on the drive itself.
When booting a Linux system it has it's own user rights management. It recognises the drive but doesn't care about the macOS user rights management. That's because user management is only a system thing. It says like User1 is only allowed to access /Users/User1. So it denies access to other user folders. But when accessing the drive directly without the system we can just access them because the files are stored on the drive without encryption. It's kinda hard to explain but hope I made it more clear.
Well, I think it's not a dumb design. It's just local user management and not designed to protect the files from external access. That's why there's disk encryption
1.) Booting into Recovery Mode and resetting the password
Yes, because the Recovery Mode has root and and stands above all other users. It can change anything besides suff that's protected by SIP (System Integrity Protection) but that's another topic. But Resetting the password should not work with drive encryption because root can't even read the drive.
2.) Accessing files on your HDD via "Target Mode"
As far as I know you need to enable that first in System Settings/Startup Disk/Target Disk Mode.
3.) Removing your HDD, and plugging it into another computer and simply accessing files like they were on an unprotected external drive
Yes, but the other computer needs to be able to read the file system.
4.) Booting from a USB drive using another OS like Linux, and then accessing files on your internal HDD
Yes, but could be problematic with the introduction of APFS. I'm not sure if there's already an open source implementation for linux yet.
When File Vault 2 is on, there's no way to access your data without password. And if you loose your password you won't be able to access it as well. There are options like being able to restore it with your Apple-ID but I prefer the local Recovery-Key stored in a safe