The lack of room for the Q to move is only of minor concern. Strictly speaking, the Q is developed where she stands, but moves late in the opening to make room for the rooks. Black doesn't have a lot of choice here. The move played is reasonable.

First, let me say thank you for commenting on my thoughts. Although I am a solid Class C, I realize my limitations and very much appreciate the insights of a much higher ranked player. There are many times I get in a situation and wish I had the experience to just look at a position and "know" the right path  

The "knights before bishops" rubric is, I am reliably informed, intended to mean ".. per side of the board". So a move like 5.Bc4, say, would comply with this guideline. However, 5.Nc3 does seem preferable on other grounds: it's a good square for the knight, and it's not yet clear where the f-bishop would best be placed. All the same, I would have been tempted to play 5.c4 with a view to an eventual c5. If Black played 5...Bb4ch, 6.Nc3 or 6.Nd2 or even 6.Bd2 would be no hardship.

In the same round another player did play 5. c4 against goumindong in this same opening. To tell you the truth, I didn't even think of it, but it is certainly reasonable. Just the same, I am satisfied with 5. Nc3.

Black ought indeed to welcome a White miinor piece landing on b5, then to smack it with ...h6. Black ought to complete his K-side development at once (...Nf6 then ...0-0). However, ...h6 might not be a complete waste of time if he is planning to move the d6-bishop to c5 - or even b4 -, and wants to avoid exchanges. Far from an ideal plan (he has to arrange protection for the d5-pawn before the B can move), but it has its points.

This reply seems just about essential if Black wants to keep his king's castle intact. The problem with moving a piece twice in the opening is that sometimes you find yourself committed to moving it a third or even fourth time. If, say, 7...0-0 8.Bxf6 gxf6 leaves Black with a very porous K-side... The ripple effect of Black's 3rd move will remain to haunt him for quite a while yet!

My comments were a little simplistic. Even though the text doesn't appear very good at first glance, perhaps it is the best move in the position. Point taken.

I'm fairly sure that if the exchange meant wrecking Black's K-wing, White would have gone for it. Since the Q recapture is fine for Black, the exchange if "off". Instead of White's 8.g3, at once 8.h4 had its points.

Agreed. h4 doesn't really need any preparation here  

Now I think the time has come for Black to do something about that d6-bishop, namely, by 9...Bb4. The immediate threat is 10...Bxc3ch 11.bxc3 Nxe4, or alternatively, 10...Nxe4 at once. To be sure, it's not difficult for White to answer this, but it does buy Black time enough to shore up his centre with ...d6, when White will then seriously have to reassess his prospects of attack on the K-side (recall which way the pawns are pointing). White's lead in development would still have given White a distinct edge, but not a decisive one, not yet!

9...Bb4.

10...Bb4 was still playable, with 11...Nxe4 still threatening. White stops the threat with 11.Bd3 whence Black closes the centre with 11...d6. The b4-bishop will be safe enough outside the pawn chain and the a7-g1 diagonal may prove to be an asset for Black. Meanwhile, a line has been opened for the Q-bishop to participate in the defence. Black didn't have to be quite so complaisant here, it seems to me.