1) Possibly, but it will depend on your entity hierarchy structure. With TPEH all of your data is in one big table which can lead to its own performance problems. This is something you will need to test and prove for yourself.
2) For both TPE and TPHE, super class entities are entities in their own right, so you always know what type they are.
3) True
I'm not sure we have a best practices document - as ever the choice is really only one that you can make for your self. In general, if your supertypes are fairly similar with a lot of common fields, and only a few differences then TPE may be a better choice. If they are quite different structurally, with only a few common fields, then TPEH may be the better choice as it will avoid having one table with a lot of NULLs in the unused fields.
Matt