1. I prefer the new installer. It's pretty and I'm a shallow person, judging software by its looks.
2. From my experience with Mozilla 1.1 (I use it on a regular basis), it's stable. I crashed Mozilla 1.0 in the first few minutes I used it (which isn't to say it crashed due to problems in the bits that K-Meleon uses), haven't crashed 1.1 yet. Obviously this is just the opinion of one user. But your point about Mozilla 1.2 being better than 1.1 kinda says they should use the very latest possible, not 1.0.
4. Touch typist, I don't notice that kind of things
. But I suppose it's a handy feature.