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Can you elaborate on how this is implemented? I find the actual EIP language to be obtuse.

Are they changing how calldata is processed? or are they changing an ordering mechanism? or are they privileging calldata to have lower gas cost via a simple conditional statement? something else?

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It's simply privileging calldata with lower gas (changing a constant) plus adding a cap on the maximum amount of calldata that can be in a given block to prevent crazy state bloat. It's effectively baking in L2s as something the protocol wants to encourage by giving them a "tax break". Note that the gas market is still in effect, so this is "tuning call data against the other costly aspects of ETH tx processing" rather than some "magic price reduction".

Yes, thats it!

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