I would go ethernet to switch instead of optical, reason being, optical sounds thin compared to RJ45. LPS wise, speed is very important on the digital front. I'm using 4 x sps-500 but am in the midst of trying out Farad 3. I tried LPS1.2 and sps-1000 and I lost dynamics and the sound was way too laid back fo my liking. I didn't like it.
Most folks dread at the sps-500 cause its a SMPS, as for me, I like it and in fact is much better than a lot of genric LPS. I would be able to tell you how the Farad sounds in 2 weeks time, but for now I'm back to enjoying my music.
PS: even if I did like the Farad in my setup, I don't think I will go all Farad, I will probably mix and match and see which unit fits where. Hope that answered your 5th question.