Bernard McBryan said:
Regarding the hovering case 1 (above) and free fall case 2 gravitational time dilation being equal seems to possibly violate the equivalence principle.
No, it doesn't. The EP doesn't say that free fall and proper acceleration can't yield the same local experimental results in some particular cases. It only says that free fall compared to free fall, or proper acceleration compared to proper acceleration of the same magnitude, can never yield different experimental local results.
Bernard McBryan said:
Case 2 is in free fall, and assuming small enough to ignore the tidal forces, does not feel the gravity, nor her acceleration downward.
Correct.
Bernard McBryan said:
I suppose she sees the hovering case 1 time dilate due to the gravity, or perceived acceleration away from her.
No. Remember we are talking about the instant where the free faller is momentarily at rest, right next to the hoverer. They are motionless at that instant with respect to each other, and they are both at the same altitude, so neither one sees the other as time dilated at that instant.
Of course, after that instant, the free faller and the hoverer will start moving relative to each other, and consequently they will start seeing the effects of time dilation (due to both relative motion and being at different altitudes). But I specifically restricted attention, in my example, to the instant where they are momentarily at rest relative to each other, to eliminate those effects.
Bernard McBryan said:
Does a clock in free fall, and a hovering clock at the same gravitational altitudes experience the same gravitational slowdowns from the three perspectives
At the instant they are at rest relative to each other, yes. Otherwise no. See above.
Bernard McBryan said:
how do they explain the twin paradox from the three perspectives (hovering, free fall, far away outside observer)
First somebody needs to state a "twin paradox" scenario--that is, a scenario where two observers start out together, separate for a while, then come back together and compare the elapsed times on their clocks. Nobody has yet done that in this thread. Once a specific scenario is stated, explaining how it works from the three perspectives will be straightforward.