The ratio of the luminosity of diffuse 511 keV annihilation radiation, measured by INTEGRAL in its four years, from a Galactic positron ( 3.5 kpc), the cascade of the magnetic turbulence, which scatters the positrons, is damped by ion-neutral friction, allowing positrons to stream along magnetic flux tubes. We find that nearly 1/2 of the positrons produced in the disk escape from it into the halo. On the other hand, we show that within the extended, or interstellar, bulge (<3.5 kpc), essentially all of the positrons are born in the hot plasmas which fill that volume. We find that the diffusion mean free path is long enough that only a negligible fraction annihilate there and ~80% of them escape down into the H II and H I envelopes of molecular clouds that lie within 1.5 kpc before they slow down and annihilate, while the remaining ~20% escape out into the halo and the disk beyond. This propagation accounts for the low observed annihilation radiation luminosity of the disk compared to the bulge. In addition, we show that the primary annihilation sites of the propagating positrons in both the bulge and the disk are in the warm ionized phases of the interstellar medium. Such annihilation can also account for those two basic properties of the emission, the fraction (~93% ± 7%) of annihilation via positronium and the ratio (~0.5) of broad (~5.4 keV) to narrow (~1.3 keV) components of the bulge 511 keV line emission. Moreover, we expect that the bulk of this broad line emission comes from the tilted disk region (0.5 < R < 1.5 kpc) with a very large broad/narrow flux ratio of ~6, while much of the narrow line emission comes from the inner bulge (R < 0.5 kpc) with a negligible broad/narrow flux ratio. Separate spectral analyses of the 511 keV line emission from these two regions should be able to test this prediction, and further probe the structure of the interstellar medium. Lastly, we show that the asymmetry in the inner disk annihilation line flux, which has been suggested as added evidence for new sources, can also be fully understood from propagation and the asymmetry in the inner spiral arms as viewed from our solar perspective without any additional sources.