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Q1: What does cessation of form through the noble eightfold path mean?
Form is one of the grasping aggregates. With relishing, it grows (see SN12.64). For example, first we like cake, then we like chocolate cake better, then we like dark chocolate cake even better. The forms grow elaborately. With cessation of form, we only see nutriment for the physical body.
Our senses are designed to recognize what we crave. That recognition is experienced as "contact". A smell or sight or taste announces itself through that contact as the object of craving and demands our attention to repeat a pleasant experience (i.e., rebirth of the eating of chocolate cake). That identification of the object of craving is a "form". It is the biased lens of craving through which we observe the world.
With the cessation of craving, the forms dissolve because they no longer serve any function. One looks at chocolate cake and sees sugar, fat, flour and spices. One understands their nutritional value and acts according to that understanding.
The example of chocolate cake is a simple example for practice. The principles can be applied to many things that cause suffering: fear of heights, anger, infatuation with one's own health and youth, etc.
In terms of the physical body, when one attends to the physical body, it becomes apparent that we do strange things like wonder if "my hair looks nice" or "should I wear this shirt?". These are all just forms based on craving. With the cessation of craving, all those silly suffering thoughts evaporate.
Forms include more than mental models (i.e., thoughts). Forms come into being to serve recognition and craving. When craving ceases, forms appear and disappear on their own as needed, they don't linger and hinder us through craving. The chocolate cake is still there but it does not have a form for craving.
Q2: I guess it can be argued that the "cessation of form" (through noble eightfold path) and "escape from form" (through abandonment of passion and desire for form) are the same thing. But are these two the same or different?
They are different. One can escape from the trap of a particular form (e.g., dark chocolate cake) but still be trapped by delight in another form (e.g., young redheads with a certain shape). Cessation is much deeper and requires relinquishing the craving the gives rise to forms.
It is very difficult to give up delight. We keep running around craving delight and trying to escape the suffering caused by that craving. We can't just turn off "Forms Switch" and arrive at the cessation of form immediately, because the cravings (i.e., forms) that define our identities are easiest to deal with one-by-one. And this is why we practice daily and diligently tossing out those delights and cravings and forms. At some point, we realize that forms have ceased for us. That would be with Right Wisdom. And then we achieve Right Freedom. (SN12.23)
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That's the same with everythink/g. Taking Sangha. Don't giving interest toward it, it soon disappears, and no such as Sangha is traceable in the world of experiances by the six senses. Or Devas: think why there are no Devas anymore. Or Iddhi. It's the same with Nibbana as well. Soon it (traceable by one path) will be no more traceable in the world.
And with everything else the same: what gets no nurishment, inwardly and othwardly, disapears in ones world.
If one gives much food into words and "meanings" that a huge forest grows. Bigger and bigger, no more way out to trace.
Take care of what Upanissayapaccayena (strong condition "nurishment") you give into. "Push the breaks and avoid the stacks".
[note that this is not given to nurish the forests of trade, exchange, stacks and what ever makes one blind to the Unbond]
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For the benefit of the readers, I will post an answer here to my own question (contrary to the rules laid out by the moderators), rephrasing what I think is the answer meant by other people here, but I will not accept my own answer.
The correct interpretation of this sutta is most probably:
From the origination of (craving for) nutriment comes the origination of (craving for) form. From the cessation of (craving for) nutriment comes the cessation of (craving for) form. And just this noble eightfold path is the path of practice leading to the cessation of (craving for) form.
Nutriment refers to edible food, contact, mental volitions and consciousness, according to SN 12.63 and SN 12.64.
This is consistent with the second and third noble truths that the cause of suffering is craving and the cessation of suffering is through the cessation of craving.
What I think is special and unique about this interpretation of the sutta is: From the origination of (craving for) nutriment comes the origination of (craving for) form. From the cessation of (craving for) nutriment comes the cessation of (craving for) form.
I would credit Dhammadhatu and Damith for their contribution to this interpretation above, although I do not claim that this is exactly their view, but rather, what I think they meant.
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Yes, rebirth can ONLY be ended through the practice of the Noble Eight Fold Path. No other way.
Nutriment is four fold: Physical nutriment (kabaḷīkārāhāro) - the edible food as well as a person or object we take as "beauty", Contact as nutriment (phasso āhāro), Mental Volition as nutriment (manosañcetanāhāro) and Consciousness as nutriment (viññāṇāhāro).
When these four nutriments ceases, Form ceases. The practice (i.e. development, aka. meditation) that leads to the cessation is the Noble Eight Fold Path.
If you want to learn more about this, listen to this meditation on Suffering due to Four Nutriments. You can learn about these four nutriments and how we end up with four bad ways (agati) because of them.