I think the token stays on steem-engine, but acts on the hive blockchain. I don't see in this post that the PAL token has moved to hive-engine - but it appears that they intend to move the token at some point in the future.
FWIW I run then server for a Steem-engine token that scans both hive and Steem blockchains for activity. It's possible but takes resources.
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Doesn't PAL draw on blockchain data to determine how it's being invoked, just as many SE coins do? Seems like it's not any different to draw that data from Hive than from Steem.
So yeah, you want SE / HE tokens tied to their chain and leave it up to the token issuer how they want to deal with the two chain thing.In principle yes, but there are problems. E.g. we cannot assume that @userX on one chain is @userX on the other chain. Even if the account existed before the chain split, the original account holder might've sold off their account on one of the chains.
I reckon the communities concerned can handle that as they will. The number of accounts that have changed hands is likely low. This would be vastly preferable to many than having to create a new coin.