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Correct. New York does the same thing California does, but for live stage performances and musicals, hence why every stage troupe tends to base themselves out of New York and we still call them Broadway musicals/Broadway theatres to this day. Thus New York has special get-out-of-jail-free...

Basically this. Certain states give certain industries every imaginable special protection, tax benefit, and etc. and all of that specific industry then clusters there. California is the center for movies because they bend over backwards and sideways to protect moviemakers from all...

I find it best to pre-draw the line in your own mind after spending some time thinking on the subject. That way when push comes to shove, you already have a firm boundary set and it won't be as easy for somebody to pressure you across it as they would if it was vague and fuzzy.

For the same reason that, when shooting a movie about a murderer, you do not actually kill the actors involved.