ACL question

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I have a couple questions regarding what I just read:
1 - There seem to be errors in the figure and in the programming, so I
made some corrections and I'm hoping someone can confirm that my
changes are indeed correct.
2 - Why is the loopback necessary here?
3 - And, in the real world, would this scenario be programmed
differently or would it never exist at all?
4 - What's the significance of programming RIP here when this section
is on ACLs?
- - -
Cisco Press, CCNA Self-Study - ICND
Ch. 6 - Basic IP Traffic Mgmt & Translation w/ ACLs
fig. 6-24, pg. 245-246
- - -
using NAT when merging two networks that use the same address space
- - -
Diagram:
HostA-192.168.1.100
connected to
RouterA-e0-192.168.1.1

RouterA-s0-10.1.1.1
connected to
Internet

HostB-192.168.2.2
connected to
RouterB-e0-192.168.2.1

RouterB-s0-10.1.1.2
connect to
Internet
---
RouterA:
access-list 1 permit 192.168.1.0 0.0.0.255
ip nat pool Becky 172.16.17.20 172.16.17.30
ip nat inside source list 1 pool Becky
int loopback 0
ip address 172.16.17.1 255.255.255.0
exit
int e0
ip address 192.168.1.1 255.255.255.0
in nat inside
exit
int s0
ip address 10.1.1.1 255.255.255.0
ip nat outside
exit
router rip
network 10.0.0.0
network 172.16.0.0


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