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Q1
From DBI's perspective, we are either going to be inserting addresses or updating addresses with your data. (Addresses are never deleted but retired on our end and yours I believe). How will we tell the difference if it is an address update or a brand new address? via an XML tag?

A1
Agreed.
See corrected examples below.See example 3

Q2
The first example you give below does not have an APN (what DBI refers to as block/lot). DBI cannot make use of any address without an APN (block/lot). These should be excluded until they are complete.

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This is a MAD artifact - DBI probably won'lt t want it.
But let me explain the purpose.
A MAD "address" is represented using the concept of a base address and a unit address.
A base address always has one corresponding unit address.
There may be additional unit addresses or not.
If the base tag is marked true, then this unit information is directly associated with the base address.
If the base tag is marked false, then this unit information is not directly associated with the base address.

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Code Block
    <address>
        <number>14</number>
        <street>MAPLE ST</street>
        <unit>
            <base>true</base>
            <number></number>
            ...
            <apns>
                <apn>1234001</apn>
            </apns>
            <action>insert</action>
        </unit>
        <unit>
            <base>false</base>
            <number>a</number>
            ...
            <apns></apns>
            <action>insert</action>
        </unit>
        <unit>
            <base>false</base>
            <number>b</number>
            ...
            <apns></apns>
            <action>insert</action>
        </unit>
    </address>

There is no ownwership ownership at the unit level.
The owner is specified at the base address level.

Example 3
Anchor
example3
example3

What I think we want an instead of the example 2 (apt building) is something like this:

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