I think you pretty much answered your own question. But to expand, it not only eliminates (well not totally) the dead spot in the middle of the fan, but it also makes use of more of the area on the rad other than the 120mm circle (or whatever size fan).
Noise decreses as the air is spread out over the entire rad as opposed to the same amount in a smaller area.
Temperature drops are very marginal. I havn't noticed anything over .5C drop with a shroud. I think it would make a larger difference on smaller radiators though.
I don't know about your last question. I just guess. I usually just go 1.5 times the width of the fan body. Not scientific, but seems to work. But then again if real numbers where crunched maybe my .5C would be greater? My water temps are pretty low so I really don't worry about it much.
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