Purely my guesses:
1. Yes - their main market is actually looking like drones - predominately for the US DOD.
2. It took them a few weeks to attach it to a Cirrus which seems pretty good for the first time it's been near an aircraft - if you look at the various test videos you can see it's usually mounted on aircraft-type mounts and it's been vibration tested by Hartzell - again on aircraft-type mounts. It has been specifically engineered to fit inside existing cowls (they have done this by literally measuring a variety of engine bays). Remember this has been engineered from ground up as an aircraft engine and not adapted from another application type.
They are planning to manufacture about 500 year. At the moment, the first available slots in the schedule are in 2017 assuming it gets STCd next year. All slots ahead of that are gone.
Whether or not its a replacement for the smaller market - I suspect not. It will be expensive (the idea being that it pays for itself in longer TBO, lower fuel consumption and/or operating at max continuous whilst not at full rich) and so probably not an option for aircraft operating less than a couple of hundred hours a year. Once proven though - it could be scaled down - the current unit is capable of 450HP (I think?) and so will be de-rated for many applications anyway.