Couple of questions on the Creative Cloud product:
1) Does the software physically gets installed, like sits on the hard drive?
2) What happens to the software after the subscription is over and not renewed? Will I be still able to use the s/w or not?
CC is a licensing and update delivery mechanism. The software installs locally the same as before, and you would normally save things locally, as well, although there is some limited amount of cloud storage for syncing things you designate between multiple computers.
If your CC license expires then the various CC products will give an error when you start them so you cannot use them normally anymore, but your documents, as long as they are stored locally, still exist so if you relicensed the software you could open them, again. I imagine any documents that are stored only in the cloud also become inaccessible or maybe disappear immediately once your license expires.