> - Why do we need complex numbers in the SE, what do they bring to the table and how does that tie in with physical intuition?
The complex numbers are the smallest algebraically closed field, they're the natural place for doing algebra.
> - How was the equation derived, intuitively?
I don't know if this how it was derived, but the way I see it it's pretty much the "square root" of the standard wave equation. So if you're trying to describe something where the solutions are mostly waves but you want to also include some other kinds of solutions, it's a very natural thing to try.
> - The laplacian in there feels like it's a "diffusion" term (as in the heat equation, things tend to spread and smoothen over time). Why isn't there ever a intuitive explanation in text books about this?
It's pure imaginary, so rather than a diffusion it's a rotation (phase change). So things tend to behave as waves with a frequency proportional to their energy.
> - [edit]: Many book trumpet that classical mechanics is just an approximation of QM, but unlike in special relativity where speed going to zero obviously gets you back to classical mechanics, I've never seen a clear example of a system where the quantum behavior "transitions" to classical behavior as a variable (e.g size) increases or decreases.
You tend to recover classical behaviour as energy and momentum go to infinity (so frequency goes to infinity and wavelength goes to zero). E.g. if you look at a double-slit interference pattern, as you increase the frequency/decrease the wavelength the classical bell curve becomes more and more visible.