(5ed ed daemon codex) "...Aura of Decay is a ranged weapon, but the Daemon may be in close combat at the time it uses it, as may the targets. When used..."
1) It is a ranged weapon (and therefore a shooting attack) and it does need LOS as per the daemon FAQ.
2) If you try to attack something further than the listed range of the weapon with a shooting attack: (6th ed BRB) "...at least one weapon must be in range of the target unit. If no weapons are in range, then a different target must be chosen..." then you must select another target. So no you cannot target something further than 6 inches away.
3) Seems pretty clear to me that the 'may' used in the wording of the ability indicates being in close combat is 'optional' (not mandatory). Further, the 6th ed daemon FAQ does not change this in the slightest from what i've noticed, so your combo should work nicely in this aspect.
Note: you do not (and in fact, 'can't') pick a specific target for this power. The power is mildly unclear on how it targets something, I presume it just automatically targets the models effected by its AoE.
(6th ed Daemon FAQ) "...be used to fire weapons that do not have a choice of who they target, such as Aura of Decay?(p54)..."
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