that's what I do, but with important releases only
yuck don't do that, better to use an updated version
yes and no, some things are not included in the iso (sometimes a new version of elive-tool is required or other elements, the selection of packages included are different, same for kernels and drivers, etc...)
yes its pretty rolling, but in any case we need the announcements in order to get some promotion... when there's no releases announced for 1 month, the downloads decreases a lot, people "forgets" that elive exists lol (or more exactly, people don't know about it, it doesn't appears on any website, and it appears in a very few btw)
you have a server or a personal computer that you want to use as server?
There's long time i was thinking into make a kind of "version" of elive for servers (version without graphical system, heh!)
hum, normally webhosts includes a panel where to create the domains and things like that, otherwise you must follow some howtos 
