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Thanks for the detailed explanation and gifs - that's a good point. I've added it to my todo list.
Unfortunately this is a bug in iOS 8. I have reported it to Apple and hope they'll fix it in an update.
Hmm. Which part doesn't work? Do you see iCloud as an option in the folder selection screen?

I just tried it on my device and it worked.
You can already move files (not folder) to iCloud. Just make sure you only select files and don't select a folder before tapping the Move button.
Yes, the icon on the left side of the file name. Here's a screenshot.

From what I can tell from a quick research, ODB it seems to be a pretty old and more or less obsolete protocol. It looks like it wouldn't work with a sandboxed app like Textastic because it is based on Apple Events which would require a temporary exception from Apple.

It may not be possible to implement for a Mac App Store app that requires sandboxing.
Then the CSS probably isn't referenced properly. Make sure to use relative file paths.
Thanks, I can reproduce it now. It only happens after the italic line that starts with "> /etc/apt…". I'll try to fix it.