How can I make sense of the following surface as insight into understanding the method of characteristics?
The partial differential equation this initially came from was $2xu_x + u_y = 0$, which has solutions $u = f(xe^{-2y})$ for arbitrary functions $f$. I don't know what boundary conditions produce this particular choice of $f$; I just whimsically picked some functions to graph.
I can almost believe that $\begin{bmatrix}2x \\ 1\end{bmatrix}$ is tangential to the "main" lines on this graph, the lines which hug the planes $x = 0$ (for negative $y$) and $y = 0$, although the main lines do have a slight oscillating pattern which seems out of place. However the lines on the stalagmites and stalactites certainly do not obey this tangency condition; they wrap the entire way around, while $x$ and $y$ vary only slightly in these regions.


That function is oscillating like crazy for $y<0$, and your picture doesn't bear any resemblance to the actual graph, since the resolution is way too low. Try something like
Plot3D[Cos[Sinh[x Exp[-2 y]]], {x, -1, 1}, {y, -1, 1}, PlotPoints -> 400]and you might begin to get some feeling for what it really looks like: