If you read the Japanese internet, tons would say they're at least the latter two. I'm sure some might also argue the first as well.
edit: This is a weird one to downvote. People living in Japan, both foreign and Japanese, complain about the cops doing nothing in all kinds of circumstances and making mistakes in a variety of procedures. I've had a mixed bag of interactions, personally.
I would assume not. The grids, except for Texas and some of Alasaka IIRC, are all fairly interconnected and share a lot. I'm assuming it comes in to some point over the border and enters the broader grid. Maybe it would be possible if it enters in multiple states to cut individual states off (which would still likely impact neighbors), but I don't know anything for sure.