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They have discussed this in the early days. As pointed out above it is an objective based campaign set within an open world which is run 'in real time' (you'll notice that every time they show Squadron 42 excerpts there is always a time and location given), since you are under military orders there would be certain restrictions and there is a brig you could be sent to for insubordination - however there is off duty time, during that off duty time you'll have some freedom to do what you want to do. Your first experience of that 'Living Breathing Universe' they have always talked about will be in Squadron 42.

You will be making choices, and those choices will have effects later down the line during the whole life of your character. Everything you do is timestamped on your personal history log which is unique to you.

The 'lieutenant' problem (ie you are always referred to by your rank not your name) mentioned in the vertical slice is because you aren't playing a named character, you are playing your created character fulfilling a role. As Jared has said "Squadron 42 is basically one huge dynamic mission inside the Star Citizen universe." As we know there is no 'undo' or going back in time in Star Citizen. In the vertical slice mission, rather oddly it may seem, Old Man Colton - the senior officer on the sortie, says 'your choice' when choosing how to go about an objective.

Chris has said that they had to give careful thought to where and how they implement resets (or game save points), this is because you aren't going to be allowed to go back and check out each different available choice with the same character - they have discussed selling character slots without the full game package. So basically if you want to explore other options than those your character chooses in Squadron 42 you'll have to restart from the beginning with a new character, which you can then choose to continue for the life of that character. That's why you are permitted to purchase multiple copies of Squadron 42 in the store.

Following on from what some are mentioning as optional mission objectives I know from a conversation with Erin Roberts in 2015 and a later Q&A with Chris Roberts on SC Live that anything you do in Squadron 42 will / may have consequences not in only Squadron 42 but also in Star Citizen. Your collective possessions, training and character history go with you when you retire your Squadron 42 character to the PU. It is a continuation of the life of your Squadron 42 created character.

So... yes.. all indications are that Squadron 42 will not be an 'on rails' game - Chris has actually stated it won't be an 'on rails' game. In this respect it is somewhat like the Hitman approach - you have objectives, but how you go about those objectives is up to you.