* That won't solve the sluggishness if you end up putting the exact same amount of books right back in, though
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More data => slower Library UI, there's no way around that
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* Yup, latest FW recommended (read 3.4 whenever the JailBreak thread forgets to mention anything > 3.2). As @pdurrant said, you'll indeed want KF8 support for KCC
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* Barring minor usability issues in some corner-cases, KOReader should be pretty usable on non-Touch devices nowadays.
* No RP/CRP on FW < 5.x, so, dilemma avoided
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* There shouldn't be any issues with current Calibre & Kindle Collections Plugin versions. If you encounter any, give me a shout in the KCP thread with more details.