No, HTTPS never returns to HTTP automatically. The user must take deliberate action. If you simply go to a web page by putting its URL in the address bar, this is easy; to submit the form is more difficult.
Yes, sending plain text over SSL is great. In fact, sending a hashed password does not really increase security - if someone manages to sniff a connection and get a hashed password, all they need to enter the site. This has one small advantage: if the user uses the same password on several sites, studying the hashed password for one site does not help them get to another site that uses a different (or not) hash. And it is hardly possible to send salted hashes, as the client does not know the salt.
Cnonce adds an extra layer of protection. If someone somehow manages to crack SSL encryption, cnonce will not allow them to get a useful password from him. This basically concerns what I did above about why sending a hashed password doesn't help: you need something that changes from session to session, and cnonce provides this.
See https://security.stackexchange.com/questions/3001/what-is-the-use-of-a-client-nonce
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