Here's my take:
1. Doesn't matter, but I usually go easy because of #3.
2. Shouldn't matter - Doesn't on a bass as far as I can tell.
3. I let it ring a little. Probably not two seconds, but at least a half second. The initial attack could be a little sharp, especially if you pluck it hard, compared to the sustained note. If a quick note is off by a hair, it won't stick out as ugly. On the other hand, a sustained note that's off key will show to the careful listener.
4. Probably not, I never worry about it, but the bridge pickup might be more consistent.
5. Why would you want something in the signal chain that isn't necessary to the signal? I prefer to keep it separate. As such, I couldn't tell you whether it's better at the front or back. I would suppose the front would allow you to tune accurately without turning off all of your effects.
-bob