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6) the database in the drop down will erroneously be the one you are disconnected from DB-A
True, but icon shown in the drop down list is the database icon, not the connected database icon (no electrical plug super-imposed over the disks). And, of course, if the connection's password is saved this behavior will not occur since login occurs immediately with no opportunity to cancel.
Edit: So this appears to be an edge case. A cancellation against a worksheet with a disconnected connection should ideally leave the drop down blank. I do note, however, that if the connection is opened again from the Connections tree, then the database icon in the drop down switches to the connected database icon.