I guess the problem we're having resides in the definitions. My understanding of organization is rather opposite to the idea of entropy. Theoretically, self-regulation and self-organization takes place in living entities as an emergent process. The purpose it serves is to prevent the living entity from rapidly reaching room temperature; i.e., physical death -- which is to say, the state of entropy. The theoretical biologist Ervin Bauer called this "the life principle."
That is correct. Maximum entropy is the 'heat death.' We lifeforms consume entropy, eat entropy, producing individuation, organization out of order. Order is statistical.
It is a difficult question when viewing biological systems, for more information Lurkers might appreciate this link.