Welcome to the revolution!
1. The controller can act as a sensor. You'll still need an HR92 in the room if you want to get any kind of control.
2. They're certainly not small. They work fine horizontally, but the screen doesn't rotate so all the numbers are sideways.
3. I live in a 1950s cottage with half a dozen extension. Almost exclusively solid plastered walls. About 4000 sqft in total, so quite a long way from one end to the other. I had difficulty siting the controller so it could be seen by both ends of the house. It's not in my preferred location right now, but it does work. It's about 14m from the two extreme HR92s and I get occassional signal issues (maybe once every 2-3 weeks). If you get a Honeywell installer to do the job for you, they should come and do a signal check survey for you too. Alternatively, EvoHomeShop has a kit you can buy to do it yourself.
4. They're about the cheapest I've found. You can sometimes get bits cheaper on eBay, but... eBay! If you use a registered installer, you may find they can get bits cheaper - although my installer just buys from Richard any way!
If you're anywhere near the Surrey/Hampshire/Berkshire borders, I can recommend an installer.