let me answer Q1 for you : Yes
ref: Version and Edition Upgrades http://msdn.microsoft.com/en-us/library/ms143393%28v=sql.105%29.aspx
Q3 We prefer upgrading using the migration path (backup/restore).
With inplace upgrades, the instance is configured starting from the old version configuration; That may leave e.g. security holes opened which would have been closed with a regular install. In case of DRP you would also need to start recovery from the old version, upgrading once more to be sure all settings are in place. People have been bitten by this quiet often and only regret it at the moment they really could mis it.
Johan
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