Questions 1 and 2 can be answered by reading the CG Midlander thread. It's quite extensive to explain along with the background events leading up to it, but perhaps Moosy or Catapult can give a condensed answer.

Question 3: I do believe Yoshi-P stated that the companion idea would be "taking a break", but that they may be introduced again at a later time.

Judging from the last main scenario cutscene though, it looks as if after the battle with Gaius, your Path companion departs in his own search for "the power" your circle member mentions.