I can't help with all of your questions my friend but I know the answer to a couple:-
1) If my ships catch on fire, unless I stop them dead & drop the anchor, they almost always become engulfed in a raging conflagration. Tarred ropes, wood, gunpowder & acres of sails go up like a Turkish cigarette held to a blowtorch. My advice is sail out of immediate danger, drop anchor & turn off fire at will. Then pray.
2) Not sure; but: the AI is programmed to desperately want some regions. Could it be that the Ottomans wanted that particular province that was "worth zero" for a victory condition or summink?
4) Having an Admiral sail near boosts the morale of your ships' sailors & can recover them from routing (unless they're like way-gone in terror). It's like having a general on a land battle. I don't know the Admiral's radius of effect, though, nor whether it gets bigger as the Admiral increases in rank or whether the morale boost radius is fixed like in MTW1.
5) They're not very good cavalry. In a pinch, their increased unit size makes them ideal to act as a speedbump to an enemy cavalry charge, but it's a bit of a waste unless you're desperate.
I am often desperate.
& yes, it is possible to use them as mounted infantry. Whilst your foot troops are slogging it out, run them full speed around the flanks or behind the enemy & dismount & let them potshot away. Or keep them in reserve & use them to quickly deploy & plug a gap in your line; if the enemy are going to break your line (or you just need to distract them & break up their attack) send them running to the appopriate point & let them buy you some time.
Nota Bene: It is very easy to then forget about the poor muppets. This is why my dragoons almost always die. Horribly. But, you know.
Light dragoons get a different (shorter?) carbine, so they can shoot from the saddle. Dragoony dragoons must dismount before firing but can use the wedge or diamond formation on the mounted charge so are a teeny tiny ickle bit better on their horseys. & their unit card looks less cool.
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