Pd definitely absorbs hydrogen, but does not affect the EM repulsion of the deuterium--the atoms really aren't any closer together inside Pd.
Compared to what? Compared to something that doesn't absorb H2 as well, they most certainly are (by definition).
Granted, compared to what they are in liquid H2, I can't say (personally, it would be very surprising if Pd could become higher concentration than H2 liquid, but then again, it is a grandeose claim...)
The deuterium still needs to obtain ignition temperatures in accordance with typical fusion calculations.
Only because it's not true that the atoms are closer together. However, if it were true that the atoms were closer together, then you would not need to heat them up to ignition temperatures of a normal fusion reaction. That's the whole point of a catalyst, to reduce the temperature that is required (i.e. the amount of heat needed to be added) for a reaction to occur.
If the EM repulsion could be changed, then fusion at lower temperatures could be achieved--that is a lot of physics to change. Muon catalyst fusion doesn't change the EM repulsion, it is only because the muon, with its massive size, hangs closer to the nucleus. This allows the another deuterium to get closer to the atom with the muon in orbit.
I don't understand. How can it get closer at the same temperature without reducing the charge repulsion (the repulsion energy)?
To get two nuclei closer together, you either have give them more energy (heat them up) or lower the energy cost of getting them near each other. As you describe it here, the muon is serving to reduce the energy cost of the charge repulsion, allowing for the protons to get closer to each other.
The muon--with its negative charge--essentially blocks the positive nucleus from pushing away a second deuterium atom. This lowers the ignition temp because the atoms can get closer together initially.
IOW, the negative charge reduces the barrier for fusion to occur, because it lowers the repulsive interaction. That's exactly what I am saying.
I think the deuterium must get within about 10^-15 meters of each other to fuse--but I would have to look that one up.
That is irrelevent to the question at hand, which involves the energy it takes to get there, not the distance they need to get to.
Any chemical reaction would not supply enough energy to cause fusion as the energy from any known chemical reaction is typically more than a million times less than required. Chemistry just can't affect the nucleus of atoms.
But that's why Pons and Fleischmann's claim was controversial. They were claiming that the solid state chemistry of the Pd did in fact provide the energy stabilization needed to affect the nuclear reaction. This was indeed a bold claim, but you can't just dismiss it with "it can't happen." They were claiming the exception to the common belief that "it can't happen." Had their experimental data held up to scrutiny, it would have required a revision of the currently accepted view of what can and can't happen.