It also seems like it defeats some of the advantages of buying with "cash" since that would involve refinancing into a relatively high interest rate mortgage.I know there's a lot here, so feel free to answer any of the individual questions or provide any response you see fit.

We want to protect ourself from any liability but not sure how the insurance works because an individual LLC is not considered a business, the IRS considers it a non-entity but for liability it does protect you but if the insurance companies handle in this manner does this defeat the whole effort.

That defeats the purpose. 

You might be smart, healthy, have some dough, in a great market, but your mind will create your own limitations.Listen to your own words for self-defeating language like:"Yeah, but...""

If you want to run a B&B and live the life, then do that, but having someone run it kinda defeats the purpose.

Kinda defeats the point and when I asked, she just ignored me.  

That defeats both scale and appreciation goals.

And the trust is for sought by investors mostly for anonymity (among other benefits), so if you or your partner is the trustee, it somewhat defeats the purpose.

Some of the responses to a “question” on a forum which was developed for “questions” and tailored to giving and receiving knowledge, sure defeats the purpose of asking.

This defeats the goal of house hacking.