1. Free in ibookstore - YES. My first is free, and has made it to the ibookstore and B&N so far. Both listed as free.
2. There will be periodic - quarterly? - updates for free ebooks, if they're received from the distributor. I don't think they're added to the usual downloads shown in the dashboard - could be wrong there. Mine for B&N don't seem to have shown up yet, although I could have misunderstood how they'll be shown - I think I'd notice if they were added to total downloads because due to a fluke of promotional luck, DEAD(ish) was downloaded a lot in the initial months of B&N figures received.
Hope that helps