"Digital delivery" refers to provision of download links, stored/generated codes, or product-specific Redirection to a URL (e.g. for access to paid online content).
Tangible-goods products normally do not issue a post-payment thank-you email by default -- as the online payment processor typically already emails the buyer a receipt for payment -- but you can optionally specify a thank-you email message or template to be sent for any tangible item if you wish.
Subscriptions are paid as an auto-recurring scheduled payment that you approve in your PayPal account. When you choose a Subscription plan in E-junkie Seller Admin > Start/Update Paid Subscription, that gets you started on the process of scheduling your PayPal account to send us that particular payment amount every month. Your E-junkie service limits will be maintained at that same level you'd last Subscribed at for as long as your payments continue, until you manually choose to down/upgrade or cancel your Subscription plan.