What happens to the heat/capsaicin content of a pepper when you roast it

In Indian cooking we usually add Ghee (Clarified butter) to reduce the heat of a chili pepper. Most Indian dishes, we would add a good heaping spoon of ghee before feeding little ones. This helps temper the heat but keeps the flavors alive so that the children get used to them and can gradually learn to eat hotter foods.

Granted, my peppers were farmed in California, not India, but they should be well within an order of magnitude of its variety's rating.

Actually, they shouldn't necessarily. All chiles, are very sensitive to the environment they are grown in. Even trivial changes in temperature, humidity, and soil pH can affect the heat of the chile. The Naga Jolokia in particular can be at least as low as 500,000 Scoville units. The hottest one has been recorded at over 1 million. Many American growers intentionally grow them much milder than those found in India; this makes them much easier to sell.

The Scoville scale is a measure of capsaicin concentration. In other words, quantity of capsaicin per fixed volume. Originally, it was measured by a panel of five tasters who tasted a dilute solution of capsaicin oil which had been extracted from a fixed quantity of dried chile. The degree of dilution at which the capsaicin is undetectable is the Scoville rating.

Modern methods use high performance liquid chromatography to precisely the pungency units of a chile, this is equivalently the parts per million of capsaicin. Multiplying the pungency rating by 15 gives you the equivalent Scoville rating.

What does all this mean? Well, since it's a measure of concentration it's important to realize that by eating one chile or 20 chiles the concentration doesn't change. However, with more chiles you are exposing your mouth to a greater quantity of capsaicin. If this is what you mean by "intensity" then sure, it's more intense with an increase in volume. Personally I think of intensity as concentration instead of volume.

Those paragraphs should answer your question overall, but I'll go through your list just the same:

1. The intensity is the Scoville rating. Again, intensity to me equates to concentration.
2. The capsaicin is most concentrated in the seeds, so chewing them will release a greater quantity of it.
3. Not that I am aware of.
4. Not sure what you mean by cooked down, but yes both volume and concentration affect the quantity of capsaicin.
5. A larger fruit of the same Scoville rating (concentration) will contain a larger amount of capsaicin.
6. Yes, the capsaicin concentration is seven times greater.
7. Yes that is a reasonable use.