No it is exactly the same principle: something has changed therefore invalidate all existing contexts. Far less error prone than trying to recompute them, what happens e.g. if a resource has already been accessed in a context that is now denied? Security 101.
As for logging other places out, that's a design choice. People change password either because they routinely change theirs (they either need to or choose to), or because of a (suspected) compromise. In the latter case you'll probably want to log everyone else out (though, who says you're logging out the attacker and not the legitimate user?) and in the former case you shouldn't (otherwise changing your password becomes annoying and avoided). The interface for changing the password could have a "log out all sessions" checkbox or it could just be a feature separate from changing your password.
No, it's not as simple as you put it. No need to condescendingly pass it off as "security 101".
Historically (Windows 95 and earlier) reboots were required to reload DLLs and so on but that’s not really true anymore. Still a lot of installers and docs say to reboot when it’s not really necessary as a holdover from then