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I believe that if you use 127.0.0.1 the traffic never leaves the NIC, but I was wondering whether the same was true when you use the actual IP address of the computer.
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By default, each network interface card (NIC) has its own unique IP address. However, you can assign multiple IP addresses to a single NIC.
Conflicts arise when two devices are on the same network trying to use the same IP address. When this occurs, both computers cannot connect to network resources or perform other network operations.
Plus, if you go on vacation and take along your laptop, your home IP address doesn't go with you. It can't, because on vacation you'll be using another network to connect to the Internet.
Yes, your IP Address will changeEven if you keep the same ISP, because you are moving to a new location, and different cables and connection method may be used, it is a very rare instance to keep the same IP Address.
No, it does not. Your operating system will recognize that it is a local address and internally loop-back even though the address is bound to a physical network port.
As a simple test, pull the network cable. You'll still be able to communicate locally. (Note that a DHCP served address may get revoked if the OS detects the cable has been removed; you may have to configure a static IP address before trying this test.)
Also, hubs (and presumably many/most switches) will not pass outgoing packets back down the wire so "going out on the wire" wouldn't work with most networking equipment, either.
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