The catch for dvds,....I looked on the site and I didn't see a single model with a built in disc drive, so you'd need to use an external one and possibly get software to play them. So something that requires more research.
What they mean by pointers is, when you make an album, that album is not copies of your photo (think of all the storage space you'd waste duplicating photos into multiple albums) but rather short cuts linking back to the photos in the camera roll folder. You will not see file names, not with the built in photo app. Just thumbnails of the photos themselves.
And you can delete imported photos. I import photos into my iPad all the time and I can delete any of them. the only photos you cannot delete on an iPad are ones that you sync onto the ipad using iTunes. Anything that you import or save off the internet can be deleted.