My thoughts:
1) $95. The whole idea is to protect your pot from depleting too fast. Inflation is a spending problem. Eat less cat food. (Control your consumption.)
2) I am sure the withdrawals are net of expenses. You are drawing out of a pot after subtracting investment costs, because that is what is left.
3) I think I get the drift of this question. Actually, no, I don't.
If the point is that some financial vehicles were not available in 1965, true enough, but the asset classes were still there. As an asset class, the EAFE may not have existed back then (I don't know), but someone could estimate what it might have done by following a group of significant foreign stocks back in time. As a vehicle, hedge funds may not have existed or been widely available back then (or only available to a few rich suckers), true. How does one estimate how a hedge fund might have performed in the past? Good question. Personally, I am perfectly capable of losing my money on my own, I do not need someone else to help me. I won't go near a hedge fund. Nobody should, IMHO.
I think you can take ESRBob's portfolio as one possible way to acheive diversification. If you want to see other, more practical ways to make your own diversified portfolio, check out Gummy's site and look for slice-and-dice. Much of the math is beyond me, but he brings it down to earth in the end. There is a ton of stuff on his site but it is worth the trouble to go through it once you find what you want.
http://www.gummy-stuff.org/