1. Users report internal memory failures as well. The whole device needs to be replaced. You can still try to retrieve damaged files from failing SD. Try the same with failing internal storage and good luck.
2. FAT32 is simple, reliable and cross platform compatible. All what is needed for file storage purposes.
3. Again, slow of fast - it doesn't matter in this case. You don't need anything faster than Class 10 SD card to store photos, listen to your music and play your videos. They will all work exactly the same from faster internal storage and slower SD card. The only difference is the price you pay. What good is a 600hp Ferrari in 40km/h speed limit zone?
4. SD card is good for cheap storage, backup and moving all your media files to another phone in 5 seconds. Take the SD card with your 32GB files from one device, put it in another - done! Even in case of phone hardware failure, you still get your files back. Not good enough?
6. Yes, you can have 20mAh larger capacity battery instead, good point.