Agree that the tax code often isn't logical.

In respect of #5, it's my belief that the gift tax consequences are a red herring.  I don't believe Congress meant to change the income tax consequences by specifying the gift tax consequences. 

I don't see any difference (for income tax purposes) between (A) giving the money to my daughter and her paying her tuition or (B) me paying the tuition directly.  In both cases the money came from me and was used to pay the tuition.  I'm retired and too lazy to back this up with a citation.  Maybe look at the step-transaction doctrine as a start.  In both cases, the "end result" is that the money originates with me and ends up at the university.  The intervening step of giving it to my daughter doesn't seem to have any substance.