"How is it?"
That doesn't mean you don't have to learn the other words. If you can only speak colloquially you would be a very poor speaker indeed
Why the hate? It's also important to know colloquial expressions, which you might hear often.
That may be so, however that doesn't make 「どうですか？」 a bad translation. I would say that both should be accepted, and perhaps Duolingo should show the alternative phrase after correcting.
Just adding extra information doesn't mean he is trying to insignify the given information.
Its ikaga because its a full word. :) It means how, in what way, or how about. Its keigo or honorific language for dou desu ka. Usually you will hear it at a cafe or restaurant. Yiu can use it to be more polite otherwise dou desu ka is used more in everyday life
What's the meaning of the English phrase? Is this a version of how are you / are you alright?
Easier to tell by the Japanese phrase: it's normally asked regarding someone's options/opinion, either about what's available to the listener or what they currently have. So not a "how are you" but more like "how are you liking it? / what do you think of it?"