Thank you for your comments. Let me try to clarify
C: TFL doesn’t print any luna, you just sell ust for luna on terra market. Anyone can do this process, it’s called arbitration.
A: The term ‘printing’ is indeed confusing, it is more like ‘minting’, if you prefer, and the opposite of ‘burning’. It goes via the Market Module; more here: Market — Terra Docs documentation
C: BTC is not a part of the terra market assets list, so you can’t trade it directly, so you do have to get rid of some Terra assets to exhange it for BTC (removing value - Market Cap - from the Terra chain and depositing it into the BTC chain)
A: Yes, BTC needs to be wrapped. Part of the UST value used to burn Luna will be directed toward BTC purchase. A proposal from Jump is currently discussed here: Bitcoin Reserve Pool
C: As far as I can tell BTC purchase is private, LFG and it’s associates control it. So how can this revert back to community?
A: LFG is a separate legal entity. As a Foundation, it is a non-profit. Its mission is described here: LFG - Luna Foundation Guard . I do not think it is part of its mission to give back to the community. Later, there will be BTC owned directly by TFL; but I understand they are different pools, with a different governance.
Hope it helps
Please do not hesitate to ask for clarification