I'll try and answer some of your questions
Q: "What exactly was the reason to develop XOOPS?"
A: I don't know really, since I've only been with XOOPS for about 6-7 months, but I assume that people (Onakazu) was unhappy with the PHPNuke and lack of good support so he went out and made his own thing.
Q: "What exactly is “contend” in XOOPS?"
A: Content? Contents of XOOPS can be anything presentable through PHP and HTML
Q: "How do the interface between Database and XOOPS-GUI work?"
A: In the inner-most parts of XOOPS (and the modules) lie the classes. They are just like classes in any other object-oriented programming language and define class attributes and functions. Usually database interaction is handled in the classes.
A page is displayed through the following procedure:
a PHP page is requested just like any other Internet page.
The page includes some basic authentication and other files before retrieving data from the classes and manipulating it to fit the page.
The various variables and values retrieved are passed to the SMARTY template object along with a specification of which template to show.
Finally, the SMARTY template object compiles the template and fills in the areas of special SMARTY tags in the template with values from the SMARTY object and finally displays the page.
So the pattern is very much like the well-known MVC-model with the exception that the template really does not "know" anything about or interacts with the model. Everything shown in the template is given in the intermediate PHP page.
Q: "What is the correct pronunciation of XOOPS?"
A: However you pronounce it
There is no (AFAIK) "correct" way to pronounce XOOPS. Some say "eksoops", some say "ksoops"... personally I switch between them or give up and say "The open source CMS, I'm working with"
Hope I've been of help to you.