answer to 3) The performance will be the same in reality (if there is some theory on this point me to it... I would like to understand more), it just be more efficient to store i would imagine (if i'm not mistaken H2 takes up most of the room in that external fuel tank on the shuttle).
Some info on rocket efficiency (we measure this as ISP... sorta like miles per gallon), it is determined by:
Nozzle efficiency
Nozzle exit pressure
Combustion chamber pressure
Ambient pressure (alt dependent, higher you go, the more effecient you get)
Isentropic properties (ratio of specific heats)
Nozzle expansion ratio
Flame temerature
Molecular mass
combustion efficiency