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1 - yes, it will. Standby isn't implemented (yet?), so the cpu draws power the whole time. Around 8.5 hours are possible.
2 - yes, it shows up as mass storage device where you drop your files. txt isn't the best choice until now, line wrap doesn't work. making an html should work fine, though.
3 - until now there's no drm implemented. That means you can't read most of the commercially available books (unless you convert them, which might be illegal, depending on the attitude of your country to fair use). iRex seems to be in talks with content providers, but you shoudn't count on it. (I don't mind, baen and gutenberg offer more then enough content until this issue is settled or i buy a new reader in 3 years - with rollable color eink display)
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