I don't know a whole lot about the observer in me as this observer is a bit fresh, say from around 2002 it began to be apparent I had one or was developing some kind of awareness that was "above" it all, something that was unemotional, but stable, like a center. it started to cease to react emotionally. then it would go away and I'd start reacting again emotionally to my particular belief systems which also were in flux, but slowly.
I did notice when the observer vacated the premises, but it was an involuntary process so I had no say about when it would show up, but it started to show up more often.

then I heard a voice message in dream "you are the seeker, the finder and the observer, each with a function.
I wrote that in the book but need to develop it further as the observer seems to be a product of the first two components, so I guess you can say when we put our bodies down, we could be this observer.

from studying emotions, I would say emotions are communications to self, or tools we utilize on ELS, but not that they are 100% our essence, although we can be ruled by our emotions and identify that is what we are. we are more than just that though.
I think the most important thing is to ask why we feel a certain way, or a certain depth of an emotion, to track it down to a belief system unconscious.

I look at the observer and notice this part of us is very calm and centered, but I wouldn't say thats an emotion-calmness but rewarding to be without peaks or lows of emotion, and seems to let in more of that PUL stuff, which is not an emotion at all, but a sense of well being perhaps. I've noticed especially the connection that emotions have to belief systems, so I think we are safe to explore and widen our beliefs to see from another's perspective to get to observer position more often.

in obe or dreams I floated above the scenes observing the set up as this observer. in these cases it was a choice to enter the set up or decline the presentation as participant. I always jumped in anyway just to see what would happen, but the body I jumped into I always knew was just a vehicle for expression. so I would say the observer, at least in these instances, was a form of conscious awareness without a form, like a body. or we could say I was an orb, for understanding to communicate being formless, not being a body, but a unit of awareness intact with my belief systems, and in charge of my emotional "pets."

I did see stage hands helping out, in body forms, however I translated them into guides and assistants, and friends, thanks to TMI helping me with that concept, we have help here.  love, alysia

I didn't answer anything CA, but it's a question on my mind also, so thought I'd ramble a bit.