A)Thats a driver chip. No LED, no supporting passives, no PCB, no microcontroller to talk to the I2C interface, just the chip for the driver.
B)The 40W is just for the flash, not for the "torch" mode, so just for a fraction of a second while the camera is capturing. The driver is limited at 1.2A according to the data brief, not even close to "nuke mode" for any of the common power LEDs used around here.
C) $2, if you buy 1000. Need 1000 driver chips? Probably $5-6 each on digikey once they are released if digikey stocks them.