You're watching a video of the monitor itself, which is playing back a recorded copy of the footage - complete with blurring of the pickpocket's face. The fingers are of a person pointing at the monitor. The zooming is probably that same person zooming in on the playback on the monitor.

Seems like the police officer was calling the guy who watched the dude fall and then calmly walked away, the "bastard." He did nothing to help.

They visited a tree. They should have gone to Cyprus instead. Much nicer.

Why would they need notes? I picture the teachers just sending them off at the airport. "Have fun, kids. Learn a lot!"

That would make it Easter Island.

Were there? I only saw the last 2, so I'll take your word for it.
The human Santa bit, plus being thousands of years too soon is still bizarre. At least Xena stuck with the name Saturnalia, even if the rest of the series was famous for anachronism.