IANAL, but my understanding of some of the details differs:
> CDDL is 'BSD-like'- allowing the right for CDDL code to co-exist in perhaps proprietary/closed source codebase, so long as the CDDL parts remain CDDL. It does not make demands for non-CDDL parts, allowing dual-license scenarios?
It's more like halfway between GPL and BSD. Importantly, BSD licenses impose sufficiently limited conditions that BSD code can be subject to GPL conditions at the same time without violating either license. CDDL makes mutually exclusive demands with GPL.
(But yes, CDDL does allow for mixed CDDL+proprietary systems; that's what it was created for. Sun wanted to open source Solaris, but needed to be able to keep some parts of it closed-source (because they didn't actually own all the code, having licensed some of it from third parties).)
> All contributions to the Linux kernel are subject to GPL
There's actually non-GPL code in there, but it's all under GPL compatible licenses, so the final result is GPL. But for instance, if someone wanted to put in the work and there was interest, you could almost certainly get HAMMER2 from dragonfly BSD included into Linux because it'll be under a BSD license that's GPL compatible.
> Now the resulting codebase has more restrictions than the spirit of the CDDL allows for. Is this not a conflict?
Yes, that's basically the conflict. Note that there is some difference of opinion on the situation; Canonical, for instance, seems to believe that they can ship ZFS kernel modules under the CDDL without making them part of the GPL kernel and thus not mix the licenses. Others say that compiling the ZFS modules against the kernel makes the result a derivative work of the kernel and therefore is a conflict. Until someone actually tries to file a lawsuit over it, I don't know that we definitively know.