What is a "domain game"?
I don't think "reasoning" is the right perspective to examine Picard's comment from. He's not making a debate point, Picard is politely telling Ralph that he's acting like an assclown and that it WILL stop.
Sometimes restrictions breed creativity, though.
You absolutely do not have to RP this. You can say "No." You can say "Ok, you go off and do that, what's everyone else doing?"
What's his deal?
Starbucks is a real coffee chain that exists in the real world. Moondeer and sunfawn follow the same naming scheme, but the players didn't realize that was what the DM was building to until the big reveal. It's...pun-adjacent.
Queercoding villains to make them seem dangerous and deviant to the people of the time (and those that are still stuck in that time). Admittedly, the people making that decision probably weren't conscious of that being why they thought eyeliner made him look villainous.
Peckromancer
You select the level of abstraction for different things based on what is and isn't the most fun to delve into. If your group enjoys poking every surface with a 10 foot pole, it's not wrong to play with that level of granularity. It's just that all the interesting things you can do with a 10 foot pole are pretty mined-out after 50 years so we tend to direct our attention elsewhere.
In 3.5 at least, if you're in a space that isn't big enough for you to change size, RAW you just...don't.
I just feel bad for the loincloth mimic.
I only recall seeing the hallway bunks in Lower Decks, and I think that was intended as a joke.