I suspect that Johan was using the Transform tool that lets you "Level" or "plumb" several different things in the image at once by stretching or compressing parts of the image.[/QUOT]
Yes, that is right, the most important / advanced option to straighten objects.
The Level icon in the crop tool does not deform the image but is a quick way to rotate it so that some line you draw becomes either vertical or horozonal
Yes, doing the same like the "Rotate" option, didn't notice it before Johan told me.
The grid overlay is just a visual reference you can use when manually making rotate or transform adjustments.
Yes, the drawback with it one cannot move it (line over line or so) respectively get lines on top of each other (which stay on top of each other when zooming), that does the Loupe Overlay.