To reply your first question: this is correct. Users at TL0 have certain permissions, while users at TL1 have all the permissions of TL0 plus some more. And so on for further trust levels.
For your second question: you should be able to see a list of users at TL0 at /admin/users/list/newuser (this is also accessible from the main admin dashboard in the “Users by trust level” table).
If you go to the various Trust Level badges you can see
This badge is granted when you reach trust level …
That is, “when you reach” and not “when you are”
In other words, the granting of Trust Levels are more like “milestones” than “current level”, though the current level is the highest reached and Trust Level 3 should probably say “reach and maintain” as it can be un-granted.
In explaining that, I see it can be a bit confusing, can’t it?