2. The tallies are added without opening the boxes, so anyone can confirm that computations to add together the tallies for a region were all done properly. But we don't give everyone the ability to decrypt ballots ad-hoc.
The only big question here is about key compromise at the end; that is a matter of properly destroying the decryption key at the end of the decryption of the tallies, so that this key cannot be leaked out to someone to try and decrypt individual votes. There are some options for making this part more robust—open-source software and secret sharing schemes—but I mean there can be very fundamental issues of trust at the highest level and if those issues are sufficiently pervasive then no amount of cryptography can protect the election; you just have a dictator who is prepared to fix it at all costs or so.