Correct, the boot cannot close with the flap down.
The hinges are welded – looks like spot welding.
Mine does not have a wooden floor – will have to ask others. My car has not been touched since 1964 – so I am guessing it did not have one.
I would think the two handles under the lid are to allow a strap to be threaded though to keep luggage in place when sitting on the flap??
Just need some period, leather cases to fill the boot!
Alistair