Yes, that's correct. He doesn't need to apply to PGWP. Indeed, if wants, he can quit college. Or, if he decides to continue, will pay domestic fee. He is now finishing the second year of a 3 year program, and had one year left, but probably he will not continue.
With this nomination you can't apply through the CEC express entry. It's a paper based application outside express entry.
BDW, you can use 2 years of experience in your home country as far as you have a job offer from an Ontarian employer.
We didn't provide proof of funds. You have to fill a form where you declare your funds, but they don't ask for a proof. Anyways, I think that you have to have a way to provide a proof of the amount you declare in case they ask for it.