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1. Do you think we can get an injunction to halt the construction?
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Possibly, depending on all of the facts of the situation. Did the neighbor obtain permission from the HOA to build the addition?
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2. Do you think we have a chance of blocking the construction period based upon the restrictions and the fact that they could build a level on top of the existing level that would not block the lake view (albeit the sky and trees)?
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Again, it will largely depend on what approvals they might have from the HOA.
The language may consititute a view easement -- you might want to check with local attorney to find out if view easements are enforceable in your state. You will need a lawyer anyway if you want to try and obtain an injunction, so you might as well sit down with one, who can review all of documents and facts of your situation and advise you accordingly.