Paul,
Some of your questions are almost philosophical!
My best advice is to read the stickies in this forum, especially the "list your setup", where you can find some examples of what most of us are using.
In the end, you will find that most of us are using similar equipment, and for the most part similar setups.
But to answer your easiest question, "what is governor mode?", simply it is a way to keep the propeller rpm constant during the flight. The electronic speed control (ESC) for a brushless motor has to know exactly what the motor is up to to keep the 3 legs of the stator pushing and pulling the permanent magnets at exactly the right time. So it knows the motor rpm. Some (but not all) ESC's can then provide a governor which will increase the throttle when the ESC senses the rpm dropping (like in a climb), and vice versa when the load drops.
The PA question actually is whether keeping rpm constant is the best thing to do or not. It is working pretty good for me.