Below is the definition of foliation of a manifold appearing in the book Introduction to Foliations and Lie Groupoids by Moerdijk and Mrčun.
Definition 1. Let $M$ be a smooth manifold of dimension $n$. A foliation atlas of codimension $m$ of $M$ is an atlas $$(\varphi_i:U_i\to \mathbb R^n\cong \mathbb R^{n-m}\times \mathbb R^m)_i$$ of $M$ for which the change-of-charts diffeomorphisms $\varphi_{ij}$ are locally of the form $$\varphi_{ij}(x,y)=(g_{ij}(x,y),h_{ij}(y))$$ with respect to the decomposition $\mathbb R^n\cong \mathbb R^{n-m}\times \mathbb R^m$.
I am confused by this definition.
Question 1. I don't understand why $h_{ij}$ need not be the identity - don't we want the hyperplane at height $y$ to map into itself?
- In the book Geometric Theory of Foliations by Camacho and Neto, §1 begins by considering the usual submersion $\mathbb R^n\to \mathbb R^m$ and then writing:
The diffeomorphisms [...] which preserve the leaves of this foliation locally have the following form $$\varphi_{ij}(x,y)=(g_{ij}(x,y),h_{ij}(y)).$$
However Figure 1 seems to suppose $\varphi_{ij}$ does map the horizontal line at height $y$ into itself, which would make $h_{ij}$ the identity.
- From a formal perspective, the reasonable condition to ask seems to be the commutativity of the triangle with broken sides below, where the broken arrows are defined by composites of the obtuse triangles.
Using the universal property of the product commutativity then implies $\varphi_{ij}=(g_{ij},\pi_2|_{\varphi_iU_{ij}})$, making $h_{ij}$ the identity as expected.
Let $(U_i)$ be an open cover of $M$ and consider a family of bundles $(\begin{smallmatrix}L_i\\ \downarrow\\ U_i\end{smallmatrix})$. Recall that descent data for the family $(\begin{smallmatrix}L_i\\ \downarrow\\ U_i\end{smallmatrix})$ consists of transition isomorphisms $\varphi_{ij}:\begin{smallmatrix}L_j\\ \downarrow\\ U_j\end{smallmatrix}|_{U_{ij}}\cong \begin{smallmatrix}L_i\\ \downarrow\\ U_i\end{smallmatrix}|_{U_{ij}}$ satisfying the cocycle condition.
Recall also the existence of a bundle over $M$ pulling back to the family $(\begin{smallmatrix}L_i\\ \downarrow\\ U_i\end{smallmatrix})$ is equivalent (at least in the topological case) to the existence of descent data for this family.
It seems the above definition of foliation is very closely related to the specification of descent data. Moreover, a foliation can be viewed as a smooth bijection $L\to M$ from the leaf manifold, and I feel the leaf manifold should perhaps by obtained using the usual gluing construction of bundles using descent data.
Question 2. What is the descent data and the family of bundles here and how do they give rise to the smooth bijection from the leaf manifold $L\to M$?
Added. Following Eric Wofsey's answer, here's the correct diagram (generally not commutative).

