Nostr Web Client

Or does it simply mean that the original post doesn’t expose the authors IP address to any relays. I’m trying to understand what all this means too.

Correct. It just transfers through Tor instead of the regular web. Everybody else can see it as soon as it reaches any open web relay.

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So Amethyst on TOR will only relay to a relay on TOR, not on naked web?

And then we should hope that this relay also has a naked web address so that other clients can download the note?

No, it also works directly with naked relays, just as with a tor browser one can visit any website.