1 - Yes, it will create new menu / content ... for associated language
2 - I wonder if you use RTL language only, why don't you simply add content / menu for RTL only, not need to use this component to translate, because this component will use other service to translate content, I think you're familiar with your native language, you can add your own content and it would be perfect.
3 - If it's content of an article, you can any text as you wish
4 - Not all templates support RTL, if you prefer any of our template collection, kindly check info page of that template whether it supports RTL or not.
5 - It will support whatever Joomla supports.