1) No
2) It was in 1.4. While less sucky than the TSLRP variant, the current method is better. Although 1.8 will employ an even better method still. No talking to them though still (both 1.4 and TSLRP scavenged lines throughout the game, there is no VO specifically for there).
3) Sounds reasonable enough. Yeah, I don't see why DS chars would want to kill them either, so the "penalty" should be gone in that case. I'll see what I can do...