Question 1:
Lots are definitely different than tax parcels, since you work for the city most likely you have a mixture of platted lands (subs, blocks, lots) and metes and bounds descriptions from deeds. Tax shops will sometimes "merge" two adjacent lots to create a new Tax Parcel for the purpose of sending one tax bill. Sometimes tax parcels reference existing lots, blocks, subdivisons but don't correspond to the original platted lot(s) shape. Sometimes Tax Parcels don't follow legal subdivision rules and regulations as the City/County may require, these are for taxes only. Does that clear up the first question? By the way, Tax Parcels are not necessarily required and you can bypass the last step to create tax parcels. Moreover, would you ever merge lots at the city? Would't that be a new subdivision, replat, tract, etc.?
The image attached shows that lots 6, 7, 8 were combined to create a new Tax Parcel (selected). Most likely the same dude/dudette owns all 3 parcels and want's a single tax bill. They will most likely need to go through the legal subdivision process to build anything new, and you'll have a new subdividion with new lots, blocks, etc.
Question 2:
Think of the PLSS as the "Survey Framework" in the example data from the Bloomfield Township. You'll actually see this change with the 10.1 version of the resource center download. The term "PLSS" could be replaced with "OTLS" in your example (Old Texas Land Survey). This parcel type also contains many other types of "survey framework" parcel types that may apply to the republic of Texas. This again is a non-required parcel type, but we urge you to give them a whirl.