The following is a post that I made on a Battle Bunny LP. I think it answers your questions about cloning...
through advances in technology it is possible now to transfer conciseness to a fresh clone just before death. Its no secrete now. There was a press release a few months ago and pamphlets were handed out. The media fiasco that ensued made things complicated and some misinformation was circulated. After the lies were squelched and the mysterious disappearance of JStankXII along with his radio news program, people began to realize that having their conciseness transferred made them in fact immortal.
They remembered all the good times, the waves they surfed, the nurses they kissed, what they had for dinner the previous day. However there is a dark side to this process and that is the skills they acquired through their career become shattered at transfer. To this day our scientists have not figured out a way to regain the muscle memory or the psionic ability the clones previous predecessor possessed. This was particularly hard on Oldie Bones. Having a supreme commission and and high skill and respect from his teammates, Oldie Bones was a very happy man. After his death there was a change in him. Instantly he was demoted to rookie, not because of his lack of experience but due to his lack of skill. This effected him deeply. Before he would go drink beer with the guys, surf all the waves, and was loved by all the nurses. Now he found himself in a strange base, wandering aimlessly as the layout is completely different. Everyone knows who he is and the guys still call him col bones as he was affectionately called, but its not the same because he is in base Europe now. They asked him if he wanted be transferred back to Australia but he declined, commenting that he forgot how to surf. It is a tough transition for all xcom troops who die. It is a sad for old Col Bones, because he is now in psiciatric treatment Commander, and he is considering to terminate his clone insurance policy.
There is hope however. The new ones, the ones with not much to loose are not as heavily affected. A quite opposite effect occurs with rookies who get the thrill of being the first to step off on a mission crave the thrill. They look forward to the fight, are often brash, and reckless. There was even one occasion were Sergie Entropie was caught playing Russian Roulette with a heavy plasma between missions as the long months and routine training regiment bores them horribly. Sergie in particular has an obsession with Crysalids, He often spots them coming towards him and holds his fire until the very last moment. These soldiers have nothing to loose and do not fear death. It is quite a different organization once this technique was developed. It is not like the old days, the days of pro newbie, the ones who have an intense fear of death, and who are affected deeply by the carnage. Pro newbie the movie has been out for quite some time and the new guys just laugh and say its all made up. They will never be able to empathize or understand the plight of a traumatized combat soldier who was not immortal.
Horst is an anomaly. His skills are so poor that he begs to be killed constantly, saying that he would do good to have a fresh clone because the one he is in now has already been deemed defective. His lawyers are working though the X-Tribunals and now have the case at the lower circuit courts. No one is certain what to do as all the regulations set no precedent for this type of behavior. We think command needs him for some special purpose. Men have heard whispers of a controversial tactic called a lightning rod. This is a cruel tactic where a commander allows an alien to creep into the mind of a mentally weak soldier and wreck havok. It is quite effective on the battlefield but the effect it has on the soldier is traumatic at best. Doctors say that resetting the clone would only worsen the soldiers condition. Horst's lawyers say that this is just a political filibuster so that they can continue the tactic. Ultimately all decisions come down to the commander, and the court system only has the power to make recommendations. After the war however the courts do report all actions of the commander to the counsel who then decide bunnies fate. If they feel he has committed any war crimes, it is in their power to prosecute. This is also unprecedented, and highly unlikely. Most feel horst will be doomed to a life of a puppet and may be entitled to a civil lawsuit after the war.
All of these effects make this organizations environment a truly unique experience that will be discussed for ages by scholars and historians. The advances in cloning, if we survive will change the world forever