2. The new way Amazon pays out with the KULL (is that right?), the unlimited library, or whatever it is called... Does that provide incentive to write shorter stories more frequently considering you can now get paid for whenever a person merely reads a percentage rather than outright buying the book?
It certainly does. The payout for KU/KOLL varies monthly, like it did when it was just KOLL, but for shorts it's very beneficial. Also the percentage is a staggering 10%. So depending on how short your story is, that's between 2-10 pages.