I'm going to see if I can get one of the templates going, but I'm not 100% sure I understand how it works. Here goes.
They have gone out of their way to portray L'ak as a doofus (and writer Carlos Cisco even gave an interview where he suggested that Breen are dumber in their fleshy form), so you may be right.
If chronophages are outlawed, only outlaws will have chronophages.
I don't think there's been any serious doubt about that for some time - at least since the official description of the Academy being closed for a century.
The most prominent prison we've seen in the TNG era is the New Zealand Penal Settlement, but not a lot is known about it. There was definitely labour involved, though I think it's an open question whether it was "forced."
With luck, this means they're also willing to negotiate with the actors.
That was a test - you passed.
Sadly, people have been talking about this for at least 15 years now. I'm firmly in "I'll believe it when I see it" territory.
Hey, I may be primitive and paranoid, but I am not...wait, what was that third thing?
Star Trek is a country, right?