Channel Zig Zag indicator, but how or why does it form a channel surrounding the ZZ lines?
Not Zig Zag makes the channel but the channel processing makes Zig Zag. Have you tried to run it and to observe its behavior live? Or at least in visual mode?
Are they projected areas where price may go?
No, it's just a channel, but this channel is formed by price.
How may a ZZ indicator be used for a trade method or system when it repaints, people say repainting indicators can be used safely but never offer a way to show this with real trades or simulated.
Only the recent extremum repaints.