Hehe, you pay extra 2 pounds if you want high resoultion skins downloaded at the moment already. Low resolution (512x512) comes with the licence. It's a selling feature of LFS. You buy LFS and get skins auto-downloaded. I doubt they will make it part of the demo.
Yes, it´s a private, and does that help with those who want to see that skin?
The point is only some of people would see if sendind on for example, on LFSWorld.
I think when uploading a skin, there would be an option, who can see that skin, for example: all of your buddy list, or all of your team mates, or just selecting a player and add it on: can see this skin.