I'll speak to #3: I always read through it carefully, but since the device isn't technically a phone, since it's not 3G enabled and not "always on" like a phone would be, I don't really worry too much. It can't track my location via GPS and I don't have phone contacts stored and don't receive text messages to the device (isn't that one way phone viruses can be transmitted?), I don't think the Android apps actually end up accessing very much through an edge.

But please, correct me if I'm wrong.