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"What will its mission be"
"Is it intended to take the place of an existing aircraft of any type?"
Medium-lift replacement for the CH-46E and the older CH-53D. Troops and supplies in-theater.
"It cannot land in (or near) a hot LZ like a helicopter" Untrue. The Block B aircraft being delivered now have an interim, ramp-mounted M240 Squad Automatic Weapon (machine gun) on a pedestal. They're still investigating what the final defensive weapon will be. Mind, if you KNOW an LZ is hot, you'd likely either suppress hostiles first, or go elsewhere.
"Its internal cabin capacity is pretty small (much smaller than a CH-53 or -47)" That's because it replaces the 46 in a MEDIUM-LIFT mission.
"Is there an armed version? mini-guns, rocket pods?" See above re: the SAW. A gunship version isn't really too practical a concept, as the proprotors block the forward quadrant from either under the wing or the sponsons.
"How close can their in-flight formations be?" About the same as most helicopters in VTOL mode; in airplane mode, the operators seem to prefer a "loose-deuce" type formation.

Folks, it's very tempting to compare the V-22 to a specific helo or airplane, which is a mistake. It's a hybrid aircraft, meaning it has some capabilities (and limitations) associated with each type aircraft. But no other aircraft can take off from a ship, fly 250 miles, land in an LZ to pick up Pax or cargo, and return, all in about two hours. Think of medevac from the battlefield, or after Katrina.

TC

But no other aircraft can take off from a ship, fly 250 miles, land in an LZ to pick up Pax or cargo, and return, all in about two hours. Think of medevac from the battlefield, or after Katrina.

This is amazing - the helo returns to its roots - I believe the first Sikorskys were used to evac WWII wounded from the battlefield (and for search and rescue).