Your description of the code is partly correct. I will quote and comment on the parts that aren't correct:
Yes, target is an integer, but it doesn't make much sense to say that it is a "binary number". You are confusing the value of the integer itself with the notations used for representing the integer. In C/C++ code (e.g. Arduino code), integer variables have values but they don't store any information about notation. For example, "int x = 8;" and "int x = 0b1000;" are totally equivalent.
A more correct statement about the target would be: "b. target is a non-negative integer less than 8192 (it can be written in binary notation with 14 digits or fewer)."
This is correct except that 0x7F is 01111111 in binary (you only wrote six 1s).
Actually ">>" is called a right shift operator. It sounds like you understand what the operator does, but I'd like to warn you that your 1-14 numbering system for the digits is not standard. Most people call the least-significant (right-most) bit "bit 0" and the bit number increases as the bits get more significant. So a better statement would be:
"d. >> is the right shift operator. It is used to shift the target to the right by 7 bits. Bits 0-6 get thrown off in to empty space. After shifting, the "new" bits 0-6 are equal to the original bits 7-13."
I am glad that you are trying to understand what is going on at a fundamental level and I hope these corrections help you understand it better. Let me know if something I said didn't make sense. If you haven't yet, please be sure to read the documentation of the Set Target command for more information:
Adding the VSRV=VIN jumper should just increase the load on your servo's power supply slightly because it makes the Maestro's processor get powered from servo power. If your power supply is adequate and correctly connected, it shouldn't have a big impact on performance. What power supply are you using and how is everything connected?