1. No. Although some people stick with the stock gear and have no problem.
2. Yes. It is cheap, easily repairable and oh, yeah, cheap. It will fly very slowly. The real problem is that it flies VERY fast also.
3. IMO foam is a great way to start. If I had it to do over again, I'd start with something like the stryker or Typhoon and upgrade the components as I go while getting better as a pilot so when the time comes, you can drop an extra $100 and get a decent ARF that your electronics and gear will drop right into. You can also mod the stryker to your hearts content and make it as fast as you want. I think it is a pretty cost effective way to go. $.02 from a relative noob.