I do think it's a little different, if I understand your question... but in effect both types of knowledge are the same In the former example you mention, there can be room for doubt to creep in under certain circumstances. People struggle with their faith all the time even if they have had a testimony. Not everybody experiences this, but many do. I think that has a lot to do with human psychology though. I mean, I know for certain that my car is parked outside on the top level of the parking garage, because I can look out the window near my cubicle and see it. But the longer I go without looking, the easier it might be for me to experience doubt that it's still there. It doesn't mean I wasn't absolutely certain when I last looked. I mean, I *saw* my car was there. Maybe I took a picture of it. The evidence was about as absolute as it gets. But, if 2 hours from now I've been away from the window, am I still absolutely certain? There's a chance it's gone, isn't there? Doesn't mean it really is gone or that I didn't see it before. The human mind is a paranoid thing, and no absolute certainty exists for long without re-checking.
This is why I pray for stronger faith and testimony from time to time.
Does God watch everything I do? Well, I don't know if I'd phrase it that way. I believe He does *know* what I do, and He knows what's in my heart, but I don't imagine He's sitting in a chair somewhere looking at the life of unixknight every moment.
Yes. We have free will otherwise it would be impossible to sin. To sin is to choose to disobey God's will. By definition, that must mean we have that free will to make the choice.
And yes. "The wages of sin is death." That's metaphorical, and it refers to the absence of eternal life in the light of God. We all sin, but through the Atonement of Jesus Christ, we can be forgiven and those sins washed away entirely.
Personally I believe it's not possible to imagine the Celestial Kingdom based on any image or experience from my mortal life, but I do believe I will continue to grow, to learn and to experience things we can't even dream of.
I don't imagine eternity as simply being an infinite timeline in a 3 dimensional universe. I think eternity means not only time but space and dimension. What is awesome to think about isn't an infinite number of years, but whole new dimensions our mortal brains can't comprehend. I also don't believe that we'll be stagnant in that state. We will always have change, growth, new experiences and new things to see and do. Stagnation would be pretty scary, but I don't see it as being plausible.