1) I think it's possible. Though now that I think about it, all rooms in the loop can be considered as different versions of the same basic room

What I got from the telescope/microscope images accompanying the note in Sub10 is the idea that vertical loops are loops in size, the big scales (galaxies, stars, etc.) reproducing the small scales (atoms, molecules, etc.), and that's what I tried to give an explanation to in my theory. But my interpretation may be wrong, of course.
2) I'm for replacing it too, but I don't have any good ideas for the new name.