How Non-Member Functions Improve Encapsulation

I read Scott Meyers' article on the subject and quite confused about what he is talking about. I have 3 questions here.

Question 1

To explain in detail, assume I am writing a simple vector<T> class with methods like push_back, insert and operator []. If I followed Meyers' algorithm, I would end up with all non-member friend functions. I will have a vector class with few private members and many non-member friend functions. Is this what he is talking about?

Question 2

I am still not understanding how non-member functions improve encapsulation. Consider the code given in Meyers' article.

class Point {
public:
   int getXValue() const; 
   int getYValue() const; 
   void setXValue(int newXValue);
   void setYValue(int newYValue);

private:
  ...                 // whatever...
};

If his algorithm is followed, setXXXX methods should be non-members. My question is how that increases encapsulation? He also says

We've now seen that a reasonable way to gauge the amount of encapsulation in a class is to count the number of functions that might be broken if the class's implementation changes.

Until we keep the method signature intact when class implementation changes, no client code is gonna break and it is well encapsulated, right? The same applies for non-member functions as well. So what is the advantage non-member function provides?

Question 3

Quoting his algorithm

else if (f needs type conversions
         on its left-most argument)
   {
   make f a non-member function;
   if (f needs access to non-public
       members of C)
      make f a friend of C;
   }

What he meant by f needs type conversions on its left-most argument? He also says the following in the article.

Furthermore, we now see that the common claim that "friend functions violate encapsulation" is not quite true. Friends don't violate encapsulation, they just decrease it — in exactly the same manner as a member functions.

This and the above algorithm are contradictory, right?