Author here. Happy to answer any questions about our protocol design.
For example, my use case requires users increasing and decreasing the limits on trustlines between them and another user, as well as making path payments across these trustlines. I know how to do that with Stellar proper, but could such transactions use the LN instead?
[edit]: nvm, should've read more carefully as it's mentioned explicitly in the article: "Stellar supports a more flexible generalization of payment channels called state channels, meaning that any operation you can execute on the Stellar network (such as not only payments, but also creating, deleting, or changing permissions on accounts), you can execute within a payment channel."
For instance, if the close gives Alice 10 lumens and Bob 10 lumens, these must be expressed as two transactions. Otherwise, if Bob deletes his account, this causes a conflict when the transaction is published (and the transaction will fail). If they are two separate transactions, there is no problem if Bob deletes his account.
> if the close gives Alice 10 lumens and Bob 10 lumens, these must be expressed as two transactions.
As in, in this case, closing requires two transactions, Escrow -> Alice and Escrow -> Bob?
Can closing allow for more than n transactions, where n is the number of participants in the channel?