Will this cup fit around a standard 1 liter Nalgene bottle?

I am not sure what the outside diameter of your 1 liter Nalgene bottle is but if it is less than 3 3/4 inches then it will fit into this cup. Inside diameter of this cup is 3.75 inches.

Which size will nest into a 40oz wise mouth Klean Kanteen?

Both the smaller and larger GSI cups are wide enough to nest a 40 oz Klean Kanteen. The diameter of the cup is not different, only the height. But note that they will not nest snugly, you will have to wrap tape or something around the bottle to make it stay on the bottle, or you will have to put it into a sleeve. If just putting it into a pack to reduce space it will be no issue also. Just letting you know.

"Color" is indicated to be "stainless". Is this product actual stainless steel? Why does Amazon insist on giving little info?

Yes, I would say it is actual stainless steel. Amazon appears to be lazier than a cut dog, for the most part, is what I can figure. Here is a link for further spec details: http://www.mec.ca/product/5035-556/gsi-glacier-stainless-steel-cuppot/?f=10&q=gsi

Glacier Stainless Steel Bottle Cup I Lightweight Cup or Pot for Travel, Camping and Backpacking - 20 oz

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