Therefore, i'm imagining that
I lost my permanent residence.
Once you've got permanent residency, it can't be withdrawn. Even if you stated that you no longer live there, you would need to de-register - but that still wouldn't change your permanent residency status.
1. Can I apply?
The law has changed, and you now need to pass one of the State examinations in Polish. That's the first thing.
? or for citizenship outright due to previous perm resi
Citizenship now, but the criteria has changed. Best to go to the relevant Foreigners Office and talk to them to see where you're at.
3. Will having it help me with making roots here. (Banks, opening a company etc.)
There is absolutely no difference between having permanent residency and citizenship - except for one thing - voting.
Heck - I haven't encountered any trouble at all with the temporary EU residence certificate.