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Never even tried keychain, but posting key worked fine. Only keychain for wallet functions?

Well the PAL tokens are based on the Steem-Engine platform, so they run like a second layer on top of the STEEM blockchain. Everything you do on here is reflected on STEEM, like if you vote or post, but the additional features, like staking and unstaking PAL are all Steem Engine functions, so while you don't HAVE to use keychain, it's encouraged as you'll need to in the future to stake/unstake or buy/sell PAL.

I'm a bit late here, but can I use external apps like eSteem to post to Palnet? I really don't want to rely on web-apps on the Steem blockchain.

If you use the palnet tag, the post will be part of the palnet community.

That's cool. However... I like the concept, but am kind of disappointed of losing yet another content tag to a dapp.

Well you wouldn't lose a tag if you used palnet.io to post, but it seemed like you were asking for an alternative.

Yes I understand. That makes me wonder though... Is the amount of tags limited in the blockchain itself, or can every dapp have means to override the 5 tag limit?