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The "distribution algorithm" links twice to "distributed" but "distributed" is just an explanatory term in the introduction and does not help understand what needs to be done to "distribute /node/ to /point/".
My understanding is that there is a set of distributions, D, where a distribution is a tuple (node, insertion point). "Distribute node to point" means D = D U {(node, point)} I agree this could be clearer. Specifically the output of the distribution algorithm is this set D. At the start of the distribution algorithm D is the empty set.
I think it would help if the structure being created was defined explicitly. Currently that seems to be missing. There's a bunch of algorithms, some that not quite clearly modify existing algorithms (e.g. the event dispatch stuff), but what overall model they are working on is not clearly defined.
Fixed. The new spec defines that. https://dvcs.w3.org/hg/webcomponents/rev/dbf47f602628