1. Generally yes, turn it on and let it run. Sport models have a start/stop button you have to hit. Sometimes you may want to clear the tracklog before you start so you have lots of memory available, especially with a handheld.
2. I ride with an Oregon 450 on my stem. I do not find it distracting. I leave the trip computer screen up most of the time and will occasionally glance at it to see how far I've gone/how long I've been out. I only switch to the map screen when I need to know where I am, which is not terribly often. I only do that when stopped, of course.
3. Wheel sensor - meh. I find that using 1sec recording intervals works pretty well to keep the GPS honest (enough). Using auto record introduces some interesting errors on occasion with the map. I have no idea whether it's part of the gps's processing that introduces them, or if the accuracy of the signal is somehow reduced. I'll use auto record on long trips, but I use 1sec for rides up to, say 2 hours. If you're into the fitness aspect more, the wheel sensor would be more important, I suspect.