Yeah, I've seen those sprites, even animated. It would have been a quite dark way to finish off his character, imo. It makes me kinda glad that they have preferred a more implicit way.
I don't remember that specific detail, but I remember readin that she indeed a quite significant increase in her stats. Which makes sense, considering who she is impersonating.
Probably there was going to be an event similar to Magiland, with the gang having to find out the truth.
Yeah, probably. However, that would have been a different version of the Teleport, if that was the case.