Your new scheme for creating friendly urls for categories and products is good in some ways, but not in others. Creating a category in the admin saves a friendly url in the ac_CatalogUrls table based on the name of the category. Then creating a subcategory under that one gives the subcategory a url which includes the parent category, like New-Category/New-Subcategory. But changing the name of the parent category doesn't change the url for it and for the subcategories, which wipes out the good SEO urls you have implemented because now the url for a subcategory isn't based on the changed name of the parent category. It seems like this should be automatic. Isn't this what MVC routing is supposed to be good at?
Friendly product urls are created when a new product is added and they include the breadcrumb down to the final level category it is in, which is good. I can't find where those are stored, though, so maybe they are dynamic? I added a new product to the New Category Edited/New Subcategory and the url of the product contained New Category Edited in the url-New-Category-Edited/New-Subcategory/New-Product. But if I click up to New Subcategory, the url is still New-Category/New-Subcategory instead of New-Category-Edited/New-Subcategory.
It seems like all of this should be dynamic so it wouldn't cause the merchant a lot of extra work.

It sounds like that would work. Could I get some input from your developers about friendly urls for products? It seems like they are only created if you add a new product from the admin. I imported a test product using your data import and it didn't create a friendly url. So merchants who want to add new products that way or move from another platform are going to have to create friendly urls themselves for new products. I very strongly think this is a bad idea.