2nd LOO Question: Creation

[βαθμιαίος]

1. May GOIC, as suggested, continue churning out newer individuations of ITself infinitely, thus in a sense creating newer souls (of Itself) as such all the time?

My guess is yes. It's an Infinite Creator, after all. To me, that implies that it creates infinitely. They say "writers write" and "fighters fight." I'd add, "Creators create."

2. If so, may it not be assumed that many of these newer souls as such, having been created at differing and varying ranks of 1-7D, are far more advanced, irrespective of their newer-ness as compared to our older-ness?

In my opinion, yes and no. You left out the second paragraph of the quote from session 28, which is

However, there is always, due to free will acting infinitely upon the creation, a great variation in initial responses to intelligent energy’s potential. Thus almost immediately the foundations of the, shall we call it, hierarchical nature of beings begins to manifest as some portions of consciousness or awareness learn through experience in a much more efficient manner.

It's certainly possible, indeed quite likely, that some of the beings created since we were have already outstripped us laggards, but, if I read the above correctly, that's not because they were created at higher level than us but because they may have used experience in a much more efficient manner.