If I'm wrong I'm sure someone will correct me.
1) I don't think they will drop down any sooner, but you will see guys that you would not have seen before.
2) I haven't noticed pulldowns to be cheaper. This is still tied to how highly ranked the guy is, as well as a randomness factor.
3) I assume you mean initially and before drop downs occur. I don't really know. Maybe someone with 2 teams in 1 world has an answer to this.
4) It definately plays a factor, similar to distance.