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The important thing to remember is that passengers will board any train going in the DIRECTION of its destination city. They don't mind taking the coach to complete the journey. The limits of this are defined by rule of less than double the direct distance.
I think that answers your second question too. They will happily change trains. Mail works the same way.
This knowledge helps a lot with direct passenger haulage tasks. By blocking local deliveries in the direction of the objective city, we then get the opportunity to haul all available. We don't want some taking the local train. Speculation, but I think passengers MAY wait for a direct train.
But the key to this type of task is to capture the volume to as many cities surrounding the destination as possible. Passengers to the other cities as far as I can tell do NOT wait. That's why blocking local makes these tasks a lot quicker.
As an aside, for those point to point specific tasks (say A->B), you can sometimes benefit by running trains from the nearby cities, c->a->b, d->a->b, etc to boost the volume going from A to B.