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I absolutely love the Vallejo Air Matt varnish and I'm not even a big fan of their Vallejo Air paints.

1) Yes, you don't want brush strokes with varnish, like anything else I guess, but the brush on varnishes dry faster and are trickier to thin (some) than regular paints. AB is the way to go.

2) Yes, in fact this is what I always do. Base coat, gloss gloss gloss, do all washes and decals, then Matt varnish and finish highlights and metallics.

3) No, but it flattens all of the different sheen varieties across the model to a beautiful affect.

4) I always add a small amount of Liquitex AB medium or Vallejo Air thinner even with the Air paints, and I do definitely do it with the varnishes.

Best of luck!