Sorry for the late reply... Missed the thread post notification.
Answers/thoughts:
1. Can I answer this later?

We are still playing with it. Please let us know if you (or anyone else) gets a chance to do this before us.
2. Binaries are compiled with --target=i386. We will also offer i586, i686, and athlon in the near future. We will also offer x86_64 and Itanium eventually (we need test hardware).
3. cpudyn is not included at this point. But if someone wants to maintain it, it can be easily integrated. (hint to all readers).
4. with cAos, you can really install a _bare_ bones system. With a core install, there are no open port services running. If you install the network packages, you will get sshd. If you install the desktop, you will get X. Editing the runlevel startup apps is as easy as using 'chkconfig kudzu off' for example (or the curses tool 'ntsysv'). (same as RH)
5. That is a _major_ goal of mine. If the file system layout is reasonable, there is _no_ need for GUI config tools (IMHO) even for newbies. We adopted the RH7.3 config file layout, but will probably start migrating that (of course keeping backward compatibility with sym-links) to something that is even easier.
Hope that helps, and again sorry for the delay!
Greg