(a) Adding the minimization operator $\mu$ to primitive recursion in effect adds computation with open-ended searches ("do until" loops) to fixed-depth searches ("for" loops). So that's what gives us access to full-power, unrestricted computation.
(b) Rosza Péter gives a beautiful example of a function which is computable, takes only the values $0$ and $1$, so is not fast-growing, but is not primitive recursive.
Take a standard enumeration $f_i$ of primitive recursive functions. We can define by a double recursion a $\mu$-recursive function $\varphi$ such that $\varphi(m, n) = f_m(n)$.
Now consider the functions $g_i(n) =_{\mathrm{def}} \mathit{sg}(f_i(n))$, where $\mathit{sg}(k) = 0$ for $k = 0$, and $\mathit{sg}(k) = 1$ otherwise.
Evidently, running through the $g_i$ gives us an effective enumeration -- with many repetitions -- of all the primitive recursive functions which only take the values 0 and 1.
Now consider the $\mu$-recursive function $\psi(n) = \mathit{\overline{sg}}(\varphi(n,n)) = |1 - \mathit{sg}(\varphi(n,n))|$. This function too only takes the values 0 and 1; but it can't be primitive recursive. For suppose otherwise. Then for some $k$, $\psi(n) = g_k(n) = \mathit{sg}(\varphi(k,n))$. So we'd have
$$\mathit{sg}(\varphi(k,n)) = \psi(n) = |1 - \mathit{sg}(\varphi(n,n))|$$
and hence
$$\mathit{sg}(\varphi(k,k)) = \psi(k) = |1 - \mathit{sg}(\varphi(k,k))|$$
Which is impossible. Therefore there are $\mu$-recursive-but-not-p.r. functions which only ever take the values 0 and 1, and hence do not suffer value explosion.
(c) It can be shown, however, that while values of such functions as $\psi$ remain entirely tame, lengths of computations for values of $\psi$ go wild. Less metaphorically, we can show that for any such $\psi$ which is computable but not p.r., there can't be a p.r. function $s(n)$ which bounds the number of steps required in the Turing computation of $\psi(n)$.
(d) Again Rosza Péter discusses multiple recursion: and shows we can still diagonalize out even if we allow nested recursion on $n$ variables for every $n$.