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And then what about system wide updates and upgrades, changing the settings in an application, will they persist after reboot? And symlinks, can I create symlinks?
Frugal is the same as Live but on hard drive instead of USB. All principles applicable to Live will apply to Frugal antiX install. So if you run Frugal antiX with persistence then updates and your changes will be kept according to persistence mode you use. So if e.g. you chose No Persistence (for maximum security of your antiX) then after running system updates and other changes you want to keep, you just run Remaster from the Control Center to permanently burn such updates and changes into antiX Frugal instance.
what are the repercussions of running a frugal inside a running Antix? What actually is the purpose of running a frugal inside a running Antix? What are the benefits? How does it help in security?
If you have antiX installed in a common way and have Frugal install as well on that partition where antiX install resides, such Frugal install is in a separate Frugal folder on that partition. It is not a part of the regular installed antiX file system. No advantages or disadvantages as they are separate systems. You can add such Frugal antiX to the grub menu alongside the installed antiX menu entry. However you do not need antiX installed in order to run your Frugal install.
E.g. I have several Frugal antiX installs and all start from grub menu. I typically do not have antiX installed in a traditional way as I personally consider Frugal form of antiX far superior to traditional install in many respects, such as no persistence, stateless and security, in addition to being compact.
From many Linux distros only antiX can do it correctly. This is a huge advantage of antiX not even being fully realized.
And just to clarify, I am not one of antiX team. I am just an average user.
Live antiX Boot Options (Previously posted by Xecure):
http://antixlinuxfan.miraheze.org/wiki/Table_of_antiX_Boot_Parameters