1. That's correct, as of right now there's no official release version that works with live. There's also no ETA that I know of.
2. Possibly for GoD - I'm not sure. That all depends on collecting the spawns in the zones, which requires using a live account that's GoD enabled.
3. To an extent, yes. Custom quests, NPCs, items, and even completely new zones are possible currently. You can't change the NPC/item graphics yet(at least not that I know of, no one has gotten the texturing to work correctly, etc)...but you can create your own encounters and your own items if you want.
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