Playstation Plus Questions

[Solid Snake]

Man, trying to read through Sony's official materials regarding the Playstation Plus service is like trying to comb through the debris of a trainwreck. I'm wondering if any of you who are Playstation Plus subscribers can help me understand the semantics.

1: I buy a subscription and then download a game that's free for subscribers. A year later, I don't renew the subscription.
So I understand I can't re-download the game after cancelling the subscription. But what happens to the copy that's already on my PS3 or Vita? Is it deleted?
What happens if I subsequently renew after a brief cancellation period? Do I lose all access to that content?

2: How exactly does the "Automatic Download" service work? Can I control what's automatically downloaded? The service seems to suggest that Demos for games will be automatically downloaded without asking for my permission, and I don't have the free hard drive space to want that to happen.

3: Say I already purchased a game before becoming a PS Plus member. Then it goes on sale and is free for subscribers for a month. Then I cancel my subscription. I can't lose my ability to download that game, right?

4: Say there's a game that's discounted for PS Plus members, but it isn't free. I purchase it. Then I don't renew my subscription. If the game is lost in the void, have I essentially just lost my money?