Asking for some questions from You can negotiate anything

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Dear teachers,

The following is an excerpt from You can negotiate anything by Herb Cohen:

The telephone is a vital verbal link in modem life. On a daily basis, you probably use a phone more often than you do a knife, fork, or spoon. A phone is attractively shaped. Its smooth to the touch. It’s easy to pick up. It looks harmless. Is it harmless? No. It can cause serious misunderstandings(“I had no idea you meant that!" ). It can be employed as an instrument of deception (“Your check is in the mail”). And it is a powerful economic force—millions of dollars are gained or lost according to the degree of understanding with which it is used.

1. Italicized expressions

Is it harmless?

(“I had no idea you meant that!" )

Could you please let me know why "Is" and "that" are italicized in this context?

Are these just for an emphasis?

2. Could you please let me know the meaning of “I had no idea you meant that!"?

Does this mean "I did not know you intended to say that."?

3. with which it is used.

Could you please analyze "millions of dollars are gained or lost according to the degree of understanding with which it is used."?

I think as follows:

Millions of dollars are gained or lost according to the degree of understanding with which it (the telephone) is used.

(1) Millions of dollars are gained or lost according to the degree of understanding.

(2) It (the telephone) is used with the degree of understanding.

(3) Millions of dollars are gained or lost according to the degree of understanding with which it (the telephone) is used.

Hope to have your help.

Thanks and best regards,

David Kim