The new agreement is short, I'd suggest reading it through thoroughly. But its at the end. Also good call on the "why has X hero not got love" questions!
No, because they cause the scene to crash and cause a memory limitation error while baking. the scene is 2048 x 2048 but i used just the middle part of the terrain.
Not currently, no. 3DO will only render filtered textures right now. Texture tiling used to be in SUITE 1.X - we'll have to bring it back in a future update. :)
I doubt there will be an x-pack. I don't think it is selling well enough for it to be made. It's a good thing Lionhead has Fable and Black&White bringing in the cash.