Hi
1)
SE is going for Andoid 2.1 in Q3 this year, no date set yet.
2)
No root for this phone, yet. You'll be better off looking for this at the xda-developers forum as it sure will come there first if at all.
3)
See other threads in this forum section for home-replacement discussion.
At the moment I'm running Tag Home and I love it.
I don't think the small screen would be any problem for either of the two you mention.
Hope this helps