1) I'd think so. My family handyman magazine is all about using pex vs copper for everything, I'm sure it's fine.
2) My buddy uses a 10 gallon cooler from Home Depot for his 5 gallon batches, works fine. Remember that means you want 6.5 gallons of water for your run off, plus you've got grain, and all that water that gets absorbed in. I think it's fine.
3) I have no idea. I went from 5->10->15. 1 gallon batches? Does not compute! What if you love it? My feeling has been I've yet to make a batch that nobody likes and my time is worth a lot to me. So now I brew 10 or 15 gallon batches, takes the same time to brew 5 gallons. If I brew more then I need I can trade it with my buddies for their stuff and I've got other friends that are willing to cover the price of materials to get a few cases of homebrew. They will come over and help bottle, etc. to cover that time. Or heck, I just give some away. The only way I can see doing 1 gallon batches (or really for me 5 gallon batches) is if I want to try something nutty. Like a coconut beer or something wacky. Remember people BUY bud, think about that. People take money, give it to another person, and get bud, or another 'premium' light larger in return. No way could you brew a beer worse then that. Somebody would be happy to have your chocolate cake beer instead of that.
If you won't brew bigger batches for yourself, do it for the less fortunate. There are beer drinkers all over the world that need your support, even in your own country, or neighborhood. Can't you give a little to them? They need your help before they have another uneducated sip! Sally Struthers would agree... Wait, no she wouldn't... Well.. screw her!