ANAND_SUNKA
As someone who has written software for the migration of public folders (Priasoft), i can tell you for sure that your point #1 is mostly true. Users will be able to create a new folder on the hierarchy-serving mailbox to which they are connected, if the new folder is a child of a folder that is assigned to that mailbox. Still not the most helpful thing, but hopefully adds some extra clarity. However, even that being true, that new folder would not show up on the primary mailbox or any other hierarchy serving mailboxes until the primary comes back online and can replicate the change.
It is also my understanding that only MS support can execute the public folder move. Sad because the command exists for on-premises environments. I guess the reason is because of the impact of such a move. You should know that if you do move a folder from one content mailbox to another that the source folder is inaccessible during the move and the ENTIRE target mailbox that will receive the new folder is inaccessible. As such, if you do make move requests you should make those to a new and empty target mailbox so that you don't affect others.
The only manual option you have is very convoluted, but does work:
Consider the following:
Folder to Move: \Sales\US\California
Folder's content mailbox: Mailbox01
Desired destination mailbox: Mailbox04
Existing Folder on Mailbox04: \Temp\MBX4 (or create this via New-PublicFolder -path \Temp -Name MBX4 -Mailbox Mailbox04)
1. Create NEW empty folder as a child of a folder whose content mailbox is already on Mailbox04.
Example: \Temp\MBX4\California
2. Copy or move data from \Sales\US\California to \Temp\MBX4\California
This will cause data to be created in Mailbox04.
3. Copy the permissions from \Sales\US\California to \Temp\MBX4\California
4. (if mail-enabled) Capture email address info from \Sales\US\California
5. (if mail-enabled) Mail-disable \Sales\US\California (if mail-enabled)
6. (if mail-enabled) Mail-Enable \Temp\MBX4\California and re-apply same values from original folder.
7. Delete the \Sales\US\California folder.
8. Move the \Temp\MBX\California folder to \Sales\US
This works because the content mailbox assignment is per-folder and doesn't change when you move a folder around.
Like i said...its convoluted, but it works.
The biggest side effect is that the items in the new folder are copies of the original, even if you do a move (a move is actually a copy followed by a delete). A such the EntryIDs, created dates, and modifed times of the items change.
You can contact me at priasoft if you have more questions.