We were there last week (6/4 - 6/8). My answers are:
1. Yes, if you take advantage of the early entry the line for LM will not be that long. I would not waste my resort FPs on LM. We found that if you timed it right you could get a shorter line for LM. It is a fast loading line and the lines are quick moving. On Saturday night, (crowds weren't bad that day), we went as everyone else was waiting for World of Color. It was a 15 minute wait. We did it on Tuesday when the park was a lot more crowded and we wound up waiting longer, but still not horrible (We did it around 8:00 that night and we should have waited a little bit longer because by the time we were done the line was already much shorter). During the afternoon we saw the line at 70 minutes a few times Mon. and Tues.
2. Absolutely yes. Most of the other rides you can pick up a fast pass for without too much effort. Star Tours was a stampede when we were there. One day people were complaining that all the fast passes were gone by 9:20 a.m. As DD (5) wouldn't ride Star Tours, DH used her passes for Star Tours. I rode it twice and he rode it 4 times. It was completly different the 2 times I rode it. DH got scenes he had never seen before 3 times, and the last time, he got all scenes he had seen the other 3 times. I wouldn't say you have to do the fast pass line early, just keep an eye on it, and if it is too long when you try, come back later. It seems to jump up and down. We rode it in the evening and it was not bad- others have said when they hit it in the evening it was long. We also rode it in the late morning hours with no long FP line. You just never know.
Have fun!