Bobness, thanks for writing. You got it right except for one thing:

The walk-in permits for next day entry become available at 11 AM, not 8 AM. If it were 8 AM, people like me coming from long distances would have to leave at 3 AM in order to be first in line to get one.

Those walk-in permits can be issued from any of the four Inyo permit offices: Lee Vining, Mammoth, Bishop, and Lone Pine. (Except for Whitney Zone permits, which are only available from the Visitor Center just south of Lone Pine.)