The restore images have everything you need to send your device back to a stock state, just like before you got it outa the box. They are not used unless you completely screw up something or want an easy way to wipe the device and restore it to stock.
you don't need to reset anything when you unlock, it'll wipe everything for you but won't mess with the system partition so the OS stays.
Someone HAS figured out how to mount external SD cards/usb storage via a USB OTG cable. I'm not sure the partition that StickMount gives it because I haven't tried it. Partitions get mounted and unmounted by the OS you don't need to worry about the name.
I think you need to focus on one thing at a time here, in this order.
Step 1 - Unlock the device
Step 2 - Root the device
Step 3 - custom roms and kernels
Step 4 - hardware mods
Your idea to internally mount an SD Card is interesting but personally I don't think it's realistic. Android on the Nexus 7 doesn't support an external SD card so even if you can get one installed, the OS isn't setup to use it without hacking. That's where StickMount comes in but I'm pretty sure you can't install games to it because the OS isn't gonna look for game data there.
Might be a challenge but I'm not sure it's worth the risk of bricking the device.
just my two cents.
Gotcha.
The hardware portion of having an SD card reader doesn't scare me at this point after seeing where the reader can fit (that could change as people try it and I read more, or actually open it up though) But I was just going to tap into the usb most likely, but the issue that needs solved is: 1.) still be able to charge it once tapped into the usb port, 2.) be able to mount the sd card like a reg. tablet AND be able install to the micro sdhc card. Because unless that is figured out, I will not do it.
Because most stuff I can take on and off the tablet anyway. I don't plan on having large file size movies or any music on it. I can swap eBooks and magazines off and on so that should be ok. I just hope I don't ever end up with several large games, but doubt I will. I do think I should have bought the 16GB to make it more future proof but am not going to worry now.
But like you basically said, I am getting ahead of myself when I haven't even unlocked and rooted yet, lol. I naturally always look ahead at everything I do and sometimes I should not worry until I get closer to whatever it is I want to do. It could all be for nothing and I not even attempt it anyway.
Thanks for the help. I will start at the beginning.