Both grey wires should be in the same terminal connected to permanent live and both orange wires should be in a different terminal connected to the boiler switched live feed which is the other grey wire (not from either valve).
That is correct. It is the hot water off terminal which connects to the grey wire on the 3 port valve terminal 8 and the satisfied on the cylinder stat terminal 7.
You need a wire to connect number 4 on the nest to number 9 in your wiring centre.
But you shouldn't be using single insulated wires like you have. You should use a short piece of 3 core flex for the live and neutral and a piece of 4 core for the switch wires.
No you would have to change the backplate.
The connections would all be the same except the black wire in termination 2 would go to terminal 3 on the new Hive backplate.
:p
I wasn't sure whether he was swapping the Hive for a Nest or the other way round.
I was going to say that if he was swapping the Hive to a Nest then the link should be between L and 2 not 1.
But then I changed my mind in case he was doing it the other way round.