Hi @Asjad123 ,
I am writing this from mobile device, and not totally sure of the answers to all your questions, but this might get the conversation started with others who can answer in more detail.
Q1: They optimise the chat process for the ai-assisted coding process, see here for some light reading and insights into how they think
https://www.cursor.com/blog/instant-apply
On a simple level, if you have tried to code with Chat GPT etc, you will know there is lots of switching environments, re-uploading modified code etc. Cursor has lots of features that make the whole process more integrated such as inline code generation and refactoring (Ctrl + K), more in-depth chat (Ctrl + L) with several context options such as files, folders, websites or even your whole codebase, and multi-file creation and editing with Composer (Ctrl + I). You can also use Ctrl + K in the terminal to generate commands via natural language text.
Q2: Yes, you can choose different models:
https://docs.cursor.com/advanced/models
Q3: I’m not sure if free users can use their own API keys, hopefully someone else can answer that question.
Here are some cost, usage and api related posts:
Some other info you might find of interest:
https://docs.cursor.com/miscellaneous/privacy
Are requests always routed through the Cursor backend?
Yes! Even if you use your API key, your requests will still go through our backend! That’s where we do our final prompt building