1. Yes, VDD can overlap neighbouring VID levels.
2. We do not specify exact timing of VDD change. As you can find, we say following: "It is expected that the chip's boot code reads the FUSESR value very early in the boot sequence and updates the regulator accordingly"
3. We have several high speed processors with VID feature, besides LS2088A these for example are T4240, LS1088A, LX2160A.
I am not sure if such a standard exists. However many other companies besides NXP use "VID" to specify core's voltages on high speed processors. This for example can be found in PC's BIOS settings.
Regards,
Bulat