I am investigating using Geoserver to output new WFS layer features dynamically. We have a backend process that will be generating new WFS features periodically that will be placed in a datastore (most likely PostGIS). I plan on creating a WFS layer for the feature data in PostGIS. The idea is to have the backend process dynamically add new features into PostGIS and my expectation is that clients making WFS features requests using Geoserver will get the new feature data I am adding at runtime. Is this the case? I can't seem to find any documentation discussing what happens when the datastore's data is updated.
Yes, that's the case. The way I do it is basically exactly how you've described. I have my tables and a PostGIS View. Then on GeoServer I create a GeoServer SQL View to postgis which is basically
select * from ourpostgisview. So as soon as anything is updated or added to the tables of course the view sees it and so does the GeoServer layer.
Here is some documentation.