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What are the differences when a brand new Ledger HW wallet is paired with Daedalus as compared to when a Ledger HW wallet is restored? The reason I ask is that after the Ledger is initially configured, the wallet only has options for changing the wallet name, viewing the public address and deleting the wallet. After a wallet is deleted and restored there are additional options to change the spending password and to confirm the wallet recovery seed.

  1. Is it possible to get back to the original wallet configuration where there is no spending password?
  2. Is the recovery phrase stored in Daedalus and if not, why is the option to confirm the wallet recovery seed not available before the wallet is restored?

I'm paranoid but I don't even like the fact that I typed in a wallet recovery seed on a computer that could have been monitored in some way.

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I think you're confusing creating a wallet within Daedalus (using create/restore by mnemonic) with using a hardware wallet. With restoration of a hardware wallet (whether it be a new one or existing), Daedalus never needs the recovery seed or a spending password. The device itself requires a pin to send funds, and Daedalus only gets the public account key of the hardware wallet so the wallet can identify utxos associated with that wallet and generate new unused addresses.

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