Hi FJ,
I made thorough testing and here are the results:
For "Download entire" (arrow down icon):
This has warning requester-Good!
-------Notes Sync icon:--------
Case 1.-One side Add test: (You ADD NEW note in MPE, then ADD another new note in SE mobile phone, then syncronize):
Result: GREAT, it works like a charm
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Case 2.-One-sided EDIT TEST: (You EDIT one note in MPE, and Another one in SE mobile phone, then Syncronize):
result: All ok

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Case 3.- Both sides CONFLICTING EDIT test: (You edit one note FIRST in MPE, THEN in the mobile phone, THEN Synchronize- afterwards you FIRST edit in mobile, THEN in MPE.
result: MPE overwrites file edited in mobile phone no matter what was first edited file.
Conclusion: Thas way, if you even touched one letter in MPE, you WILL lose that particular Mobile note data done in the most important moments: IN-Field Quick memos done with mobile phone as a replacement for paper and pen. (!)
So for now workaround for myself is to forget about editing old notes (you update frequently in-field), in MPE.
Suggestion: File Date tracking and/or file content check should be made in order to prevent data loss,ideally: The same principle (and maybe code) used in calendar conflict requester, showing mobile and MPE side-by-side and letting user copy-paste final note from the two conflicting ones.
..
Feature request: Pls also include Notes to Archive Database. for tasks its regulated via Google calendar, but Notes is another thing.
Best Regards