hi Matt,
(1) yes, the interpretation is density
(2) log(area) is used because in such models it is natural that AREA
should be multiplicative on density. i.e., if lambda is the density
for a unit area then A*lambda should be the expected population size
for a sample unit of size A. Covariates are modeled on the log scale,
and thus log(A*lambda) = log(A) + log(lambda).
regards,
andy