Have I got this right in lay-mans terms. The client is forcibly disconnected from the WiFi network and reconnects to the attackers network instead. The attacker doesn't need to know the WPA2 password but it accepts the connection setting the encryption to zeros. The client thinks it is connected to the original wifi network and continues as normal. Wifi traffic is intercepted and unencrypted.
Not quite: The attacker watches for the initial client->AP encryption negotiation (or forces it by forcing a disassociate), records one step of that negotiation and replays it to the client. That has the side-effect of causing the client->AP traffic to re-use encryption keys. Since WPA2 encryption is a stream cipher, re-using keys opens it up to a known-traffic analysis attack, which allows a listener to decrypt the…
How would you drop packet 3 without a new AP?