All the above explanations are fine but do not, I think, get to the heart of the OP's first question, which was "Why does osmosis happen?" I.e., yes, dissolving a solute in water lowers the water's chemical potential. But this leaves unanswered the question of why this happens. The answer is simple: it's entropy; more specifically, the driving force for osmotic transport is the entropy of mixing.
Consider the expression u = u_o + kT ln x_w + pV. The second term on the RHS, which tells us the chemical potential is lowered when we reduce the mole fraction of water from 1 (pure water), arises purely from the entropy of mixing. [If the solution deviates measurably from ideal behavior, then we need to replace mole fraction with activity, a; but that's a higher-order correction. When we do need to use activity, it's because energetic considerations come into play; these arise from differences between the water-water, water-solute, and solute-solute interactions.]
You can understand why the driving force is the entropy of mixing by asking yourself what would happen to the system if you removed the semi-permeable membrane. That's right, it would mix, because the number of configurations associated with the mixed state is vastly greater. So why doesn't it do that completely with the semi-permeable membrane in place -- i.e.,why doesn't all the water flow to the solution side? Well, in a typical osmotic pressure experiment, water does indeed flow from the pure to the solution side. But as it does this, the level on the solution side increases, causing the pressure on the solution side of the membrane to be higher. This causes the chemical potential of the water on that side to increase (the pV term in the above expression). Hence osmotic equilibrium is attained when the increase in pressure on the solution side causes an increase in chemical potential on that side that just balances the decrease in chemical potential from the presence of the solute. I.e., the osmotic pressure is just the pressure needed to balance the driving force from the entropy of mixing.
And, to my mind, the explanation that osmotic pressure is caused by vapor pressure lowering is not a good one. Instead, osmotic pressure and vapor pressure lowering are both colligative properties that are caused by the same phenomenon: the lowering of chemical potential by the presence of the solute, which in turn results from the entropy of mixing (plus some higher-order corrections for energetic interactions).
Finally, some may wish to say that one doesn't need to invoke entropy of mixing -- it's just water flowing down a concentration gradient (from higher to lower). But such an explanation would be incorrect. It's about the chemical potential, and thus the entropy of mixing, not the concentration. Increasing the size of the solute will increase the concentration gradient, but will not necessarily affect the osmotic pressure. Careful osmotic pressure experiments carried out by Morse* showed that dilute solutions containing equal mole fractions of glucose or sucrose have nearly the same osmotic pressure at 30°C. Yet, for equal mole fractions, the difference in water concentration across the membrane (from the pure side to the solution side) is significantly greater with sucrose than with glucose, simply because sucrose has roughly twice the molar volume of glucose.
In general, it can be shown that, if solvent compressibility is assumed to be negligible, doubling the size of the solute nearly doubles the difference in solvent concentration across the membrane (it is not exactly double because the increase in solute volume slightly increases the total volume of the solution; this deviation becomes negligible at high dilutions). Yet this does not affect the mole fraction and thus does not affect the osmotic pressure (except insofar as it affects higher-order energetic corrections). This goes back to the old statement about colligative properties: at the limit of infinite dilution, they are independent of the nature or size of the solute.
*Morse, H. N. The osmotic pressure of aqueous solutions; report on investigations made in the
Chemical Laboratory of the Johns Hopkins University during the years 1899-1913 (Carnegie
Institution of Washington, Washington, D.C., 1914).