It means the character who gets eaten dies in that scenario. Whether this "sticks" or not is irrelevant; the character can be magically resurrected, have negative continuity like an old fashioned toon, have extra lives like a videogame, or be replaced with a clone/backup.
Permavore being a subtype of fatal vore where the prey is explicitly gone for good, and that particular exact OC is not allowed to be used anymore. I used to know someone who'd buy adoptable OCs specifically to get art of them being permavored.
Not necessarily. I have several characters I simply never RPed or drew again after a certain point, or put on a very long hiatus and did draw again. Some of my fursonas started as transformations of earlier ones, then replaced them with retconned backstories.
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