ad 1) Yes it can, but it doesn't have to (dynamic tiering and memory displacement can be used).
ad 2) Datawarehouses and DBMS are two different things, so there are lots of differences. If your question is more directed at whether or not SAP HANA can and will replace SAP BW anytime soon, I recommend the following blog posts:
ad 3) Yes, that's the case. For example expert routines can often be scripted in SQLScript, thereby avoiding data transfer between HANA server and SAP BW application server.