Request for clarification - Gonna dip my toes in the KODI waters :)
#1
It has been some years since I checked on KODI.

KODI setup 1 proposed - InternetContent --> CLOUD.KODI --> LOCALVIEWERS
KODI setup 2 proposed - InternetContent --> LocalContent --> LOCALHOST.KODI --> LOCALVIEWERS
(These are my current Amazon & localhost PLEX is setups)
  
1.) I rarely stream from my cloud PLEX as uploads to server are cheap but downloads from server are expensive.
Question - if I put KODI in cloud does it "hand of stream" to my local viewing device (non-local media of course)?
Question - Does KODI do any stream management (non-local media of course)?
Question - What is the approximate KODI network overhead, if any, from streaming a 1 gig show through AWS (non-local media of course)? 

2.) I understand, depending on KODI add-on, it may not be the case my stream is upload or stored locally when I watch it when KODI points me to a non-local show.
Question - Are these streams tracked as torrents are tracked?
Question - I understand KODI can stream local content - what protocols does kodi use to download ?

Thank you & cheers
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#2
Kodi is a media centre, which is designed to be installed locally (on a device connected to the TV being used to display the media, or these days actually on the TV itself if it's an AndroidTV). There isn't such a thing as a "cloud Kodi".

Basically each displaying device with have a Kodi device connected to it, and then that will play media that is either stored locally, stored on your network (streaming on ethernet or wifi via NFS, SMB or suchlike) or streaming from the internet. There are also addons that can be installed which will allow access to certain internet sources (if you have a suitable IP address for the location of the source in some cases, due to geolocking). So your setup 2 is all that is possible, setup 1 is not.
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Request for clarification - Gonna dip my toes in the KODI waters :)0