Hello Elliott!
1. Yes. Category 1 (Email Suspended) and Category 2 (Email Invalid) are counted in the mail statistics as hard bounces, all other category numbers are soft bounces.
2. Category 5 are also categorized as soft bounces.
3. Sales Email bounces are categorized and handled just like regular Marketo mail bounces.
4. Yes, category 2 sets "Email Invalid - true".
5. The first is termed a "composite bounce", that is when a mail is accepted and then rejected during the same SMTP session. In this case, that does mean that the mail recipient most likely did not get the mail delivered to their inbox. If a mail is bounced much later, that means that it was accepted during the initial SMTP session, but then was rejected when the recipient server, for whatever reason, is unable to complete delivery to the inbox for the intended recipient. This usually is an email that MTA sends back to us, which allows us to record the bounce.