No. It means you're safer.
Not necessarily.
True. What matters mostly is your margin above the stall speed.
In a level, balanced turn, *any turn*, you load up the wings to some degree and thus increase your stall speed. But this effect is almost zero up to 20 degrees of bank. (At 20 degrees, the g loading increases by 6.4% and the stall speed with 3.1%) That's why, at the PPL training level, turns to final are limited to 20 degrees. So your margin above the stall is still a very healthy 27% (1.3 Vs0 minus 3%)
In a 45-degree banked turn you are pulling 1.4g. This increases the stall speed by almost 20%. But when you fly that 45-degree banked turn *at flap limiting speed* (the top of the white arc - Vfe) you still have a very healthy margin above the stall - probably more than 30% even. Depending on the exact numbers for the airframe, you can even go to 60 degrees if you need to. (Note - most airframes are limited to 2g = 60 degrees bank with flaps extended.)
The difficulty with flying your circuits like that is not in the turns. It's shedding the speed from Vfe to approx. Vs before you run out of runway. That's why you should only do this in an aircraft you're very familiar with (so you know how quickly you shed the excess speed) and a runway you're familiar with (so you know how much runway you've got left).
And to be honest, I only do this kind of stuff at my home base, where I have 2 km of tarmac with exits at the ends only. With shorter runways, or when fitting in with other circuit traffic, I typically fly a "normal" circuit. In the end it's all about adapting to the circumstances and the better you know the aircraft, the more adapting you can do.