Dunc,
I think Harold made these things clear in the article, with one slight exceptioon Yes, he says diameter of the tap is unimportant, but he goes on to say he uses the largest one which fits for maximum rigidity, and later on he explains that this gives a better match of helix angle.
There will not be a front rake clearance issue; the helix clearance issue is – as Harold points out – only an issue if the tap is much smaller than the bore, and is helped (if necessary) by setting the tap slightly high, as Jason said.
Yes, the cutting is done using leadscrew drive. The main point of using a tap is to get the correct thread form; this is more important for threads like Whitworth and BSF, which have rounded crests, less important for ISO metric threads which have truncated crests. As an alternative, you can use the right full-form screwcutting tip, but these are not cheap, and you are more likely to have the thread in your workshop already.
David