1) no live edit wont work with jquery code.
2) on the page you want to disable live edit, you can add TRUE as the 5th parameter to the WA_getCMSContent function call, for example:
<?php echo WA_getCMSContent($database_PowerCMSConnection, $PowerCMSConnection, 'page name', 'content area name',true); ?>
3) That thread is still open, one thing i noticed on initial inspection was some missing files that where not uploaded.
4) to be able to reverse the update, you would need to have saved a backup of the original site files and the database.
5) yes, the update now includes the new files.