Let $P^{\prime}$ be the reflection of $P$ across line $A B$, and let $M$ and $N$ be the midpoints of $P^{\prime} E$ and $P^{\prime} C$ respectively. Convexity ensures that $P^{\prime}$ is distinct from both $E$ and $C$, and hence from both $M$ and $N$. We claim that both the area condition and the collinearity condition in the problem are equivalent to the condition that the (possibly degenerate) right-angled triangles $A P^{\prime} M$ and $B P^{\prime} N$ are directly similar (equivalently, $A P^{\prime} E$ and $B P^{\prime} C$ are directly similar). ! For the equivalence with the collinearity condition, let $F$ denote the foot of the perpendicular from $P^{\prime}$ to $A B$, so that $F$ is the midpoint of $P P^{\prime}$. We have that $P$ lies on $C E$ if and only if $F$ lies on $M N$, which occurs if and only if we have the equality $\angle A F M=\angle B F N$ of signed angles modulo $\pi$. By concyclicity of $A P^{\prime} F M$ and $B F P^{\prime} N$, this is equivalent to $\angle A P^{\prime} M=\angle B P^{\prime} N$, which occurs if and only if $A P^{\prime} M$ and $B P^{\prime} N$ are directly similar. ! For the other equivalence with the area condition, we have the equality of signed areas $\operatorname{area}(A B D)+\operatorname{area}(A B P)=\operatorname{area}\left(A P^{\prime} B D\right)=\operatorname{area}\left(A P^{\prime} D\right)+\operatorname{area}\left(B D P^{\prime}\right)$. Using the identity $\operatorname{area}(A D E)-\operatorname{area}\left(A P^{\prime} D\right)=\operatorname{area}(A D E)+\operatorname{area}\left(A D P^{\prime}\right)=2$ area $(A D M)$, and similarly for $B$, we find that the area condition is equivalent to the equality $$\operatorname{area}(D A M)=\operatorname{area}(D B N) .$$ Now note that $A$ and $B$ lie on the perpendicular bisectors of $P^{\prime} E$ and $P^{\prime} C$, respectively. If we write $G$ and $H$ for the feet of the perpendiculars from $D$ to these perpendicular bisectors respectively, then this area condition can be rewritten as $$M A \cdot G D=N B \cdot H D$$ (In this condition, we interpret all lengths as signed lengths according to suitable conventions: for instance, we orient $P^{\prime} E$ from $P^{\prime}$ to $E$, orient the parallel line $D H$ in the same direction, and orient the perpendicular bisector of $P^{\prime} E$ at an angle $\pi / 2$ clockwise from the oriented segment $P^{\prime} E$ - we adopt the analogous conventions at $B$.) ! To relate the signed lengths $G D$ and $H D$ to the triangles $A P^{\prime} M$ and $B P^{\prime} N$, we use the following calculation. Claim. Let $\Gamma$ denote the circle centred on $D$ with both $E$ and $C$ on the circumference, and $h$ the power of $P^{\prime}$ with respect to $\Gamma$. Then we have the equality $$G D \cdot P^{\prime} M=H D \cdot P^{\prime} N=\frac{1}{4} h \neq 0 .$$ Proof. Firstly, we have $h \neq 0$, since otherwise $P^{\prime}$ would lie on $\Gamma$, and hence the internal angle bisectors of $\angle E D P^{\prime}$ and $\angle P^{\prime} D C$ would pass through $A$ and $B$ respectively. This would violate the angle inequality $\angle E D C \neq 2 \cdot \angle A D B$ given in the question. Next, let $E^{\prime}$ denote the second point of intersection of $P^{\prime} E$ with $\Gamma$, and let $E^{\prime \prime}$ denote the point on $\Gamma$ diametrically opposite $E^{\prime}$, so that $E^{\prime \prime} E$ is perpendicular to $P^{\prime} E$. The point $G$ lies on the perpendicular bisectors of the sides $P^{\prime} E$ and $E E^{\prime \prime}$ of the right-angled triangle $P^{\prime} E E^{\prime \prime}$; it follows that $G$ is the midpoint of $P^{\prime} E^{\prime \prime}$. Since $D$ is the midpoint of $E^{\prime} E^{\prime \prime}$, we have that $G D=\frac{1}{2} P^{\prime} E^{\prime}$. Since $P^{\prime} M=\frac{1}{2} P^{\prime} E$, we have $G D \cdot P^{\prime} M=\frac{1}{4} P^{\prime} E^{\prime} \cdot P^{\prime} E=\frac{1}{4} h$. The other equality $H D \cdot P^{\prime} N$ follows by exactly the same argument. ! From this claim, we see that the area condition is equivalent to the equality $$\left(M A: P^{\prime} M\right)=\left(N B: P^{\prime} N\right)$$ of ratios of signed lengths, which is equivalent to direct similarity of $A P^{\prime} M$ and $B P^{\prime} N$, as desired.