all the questions can be answer with both yes and no. let me give you an example, then you can tell me if whether it falls into improving physicality or improving efficiency. i have a spoon rested on top of the table. i can pick it up with two fingers, my hand+fingers, my forearm + hand + fingers, my whole arm, my upper body+my arm + fingers, my entire body from toes to the fingers. which of those falls under improving physicality and which improve efficiency? and asking the same question from atheletics point of view.
It doesn't fall into improving physicality. I would say the better/more of your body you can recruit to do a given task, the more efficient it is, although in this case, efficient might not be the right word. Spoons are light objects, lifting it taxes the system very little.
for internal stuffs, the last item is what i am doing. why? because it's interesting to do so. and because it relates to another of those old saying in internal training.
btw, there is no spoon!
I think I understand where you are going:
Internal= better organization and use of the body.
External= making the body bigger, stronger etc.
Is that a fair assessment?