1,2,3,5. NO. Legal, they are paying what the leaser thinks is appropriate for the a/c.
4, YES, not that it would bother me or, i should think, anyone else on this board. Illegal.
i think the real issue is not the skill of PPLs vs CPLs (i'd rather fly with a multi-thousand hour back-country Alaskan PPL than some newly-minted FI doing charter on the side), or the ferry/favor flights. the issue is that, regardless of safety, flying for money is a privilege, and one that must be earned. those that put in the required time, money, and effort get the rewards. those that do not should not. simple as that. it's like diamonds. sure i can get a ton for cheap(er) in Sierra Leone, and they're just as nice as the ones i get at the new york diamond exchange, but i'm undercutting the people who play by the rules and ensure that things are done the right way, without slave labor. (see, look, i'm comparing you CPLs to diamonds!)