Famously so. The main method of deployment was an offline installer before they made Galaxy, and AFAIK Galaxy just downloads and runs the installer.
No, it doesn't use offline installers. Source: worked on that in the past.
The running game can also call out to Galaxy and unlock, or not unlock, ingame content based on what it hears back. It's pretty difficult to imagine a definition of "digital rights management" that doesn't include this.
Not quite. You can use Galaxy to download the offline installers (or just do that through the website), but when you install a game through Galaxy, it downloads a special build which it just copies to the right location, without running a separate installer.