Trying to understand what this number on the ship card does. As far as I can tell, it controls the number of squadrons you can effect with the squadron command on a command dial.

Does it do anything else? Can you have fighter squadrons in excess of your squadron value?

Do they still activate normally? You just choose which ones you are activating with the squadron command dial of that ship, but this only Applies to the squadron command. Otherwise the squadron value does not matter, correct?

Yes, you are on the right path. you can have more squadrons then your ship card says up to 1/3 of your total points may be spent on squadrons regardless of your ships number. The squadron number on your ship card is only for activating ships with your command dial. Nothing more. It has nothing to do with list composition.

Essentially yes.

The number of squadrons you activate off a squadron command from a dial is equal to your squadron value.

The number of squadrons you activate off a squadron token is one.

(both are within close-medium range).

It does not limit the number of squadrons you may field, the only limit is 1/3rd of the points being played.

Squadrons activated with a command do so immediately, and may move AND shoot.

Squadrons activated during the later "Squadron phase" may only move OR shoot.

What Mav said. The squadron command (on a ship with a decent Squadron value) is essential if you want to use your fighters pro-actively - being able to move and then shoot (or shoot then move if you are no longer engaged after the attack) is crucial for many tactics (particularly getting the first attacks against enemy squadrons).

For ships that can't use Expanded Hangars (e.g. Neb B), combining the dial with a token is essential - this is one of the reasons why Raymus is such a good card (esp on the Yavaris).

The Squadron command is also important for some upgrades (e.g. Adar Tallon, Flight Controllers).

thanks for the clarification.