Wow that's a lot of questions.
I'll try my best to explain what I know.
I don't understand why you would create your own digital signature - isn't it the same as creating a read only copy of a workbook? Is there any diffference?
No, the Digital Signature doesn't protect or lock the workbook in any way. It merely gives the receiver of the workbook some assurance that the macros were last edited by a trusted source.
Also it says it only works on the computer that you created the digital signature - so what then would be the point of it?
I have created a digital signature on my computer and that signature can only be applied to documents from my PC. However, I can send a document with that digital signature applied to 100 people in my company.
Each person can go through a few steps to "install" my certificate on their computer. If they trust me, then they can choose to always trust documents that have that digital signature from me applied.
Even though my signature is "installed" in their computers, they won't be able to apply my signature to another document (in a sense forging my signature). That is what is meant by the phrase you read "only works on the computer that you created the digital signature"
Also, when I open a workbook with a digital signature - it says that the " author has marked it final for editing but you can "edit it anyway?" And if you do, then it removes the signature.
The Digital Signature won't prevent someone from changing my macros, but if they make changes, my signature will be removed- making it clear that I no longer can assure the integrity of that workbook.
Also what is the difference between adding a digitial signature via the "Prepare command" and using the Signature line in the "insert" command.
I haven't used those tools to add digital signatures to VBA projects, I typical just add them in the VBA Editor using Tools > Digital Signature.
I've been assuming you were referring to applying Digital Signatures for VBA macros, but you can also use them as a way to sign documents (like letters or reports) electronically, so the receiver knows that it came from you. I think the two tools you mentioned are designed with that use in mind.
Hope this helps!