I think you've got a setting wrong. I've got mine set to download only. So it just downloads the update in the background and notifies me. I have even left that notification sitting there for months before without it forcing or nagging me.
I think you're getting stuck on the "game over" part. This by itself does mean "the end of something" But "start over" is a separable phrasal verb that means "to begin again". So you can say "Let's start over" or "Let's start the game over".
I always felt a little bad for ESL students who just discovered phrasal verbs because they're basically a whole new set of often nonsensical verbs to learn.
Can confirm #6. Wife calls it dark screen and does indeed think I'm cool for using it.