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German Rail Pass

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Buying a 5 day German Rail Pass Twin Pass for my husband and I to travel to Hamburg, Salzburg, Rothenburg, and Berlin with an extra trip in case we get a wild hair. We'll be taking trains here and there inside cities (esp. Berlin) and going to many city attractions.
1. Does the German Rail Pass discount the cost of a city ticket in each city?

Also, I am confused by the website, but it looks like we get transport from (for example) from Rothenburg Hbf to Berlin Hbf with our Rail Pass, then to Friedrichstrasse train station near our hotel free with the pass.
2. Am I understanding this correctly and is the Bahncard the same as the rail pass?

Excerpt: Benefits for BahnCard holders
A long-distance ticket (route of 100 km or more) which you have purchased with BahnCard discount entitles you to travel free on public transport (bus, S-Bahn, underground and tram) to the departure station and from the station to your final destination within the area of validity of the City-Ticket in more than 100 German cities.

3. Any advice for travel on planes and trains, or S-Bahn,and U-Bahn passes in Germany?

I'm awesome at being confusing so please ask questions to help yourself better understand my questions if necessary. Thanks :)

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