It is a group of Men, Northmen, who settle on the Long Lake. Descendants of Dale also reside there.
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No. There would be some reference to the Elves and Men mixing there. But there is not. They are separate races, and though they trade, they are not related.
Lake Town was the name of the village that existed at the time of the Hobbit. It was destroyed by Smaug when he was awakened by Bilbo. The down that lay at the foot of the mountain that was destroyed previously was called Dale.
The men felt that the deserved it after killing the dragon
Smaug doesn't recognize the scent of Hobbit, although he knows what dwarves and men smell like.
Men of lake town, the place where Bilbo and his companions of dwarves arrived to after escaping the elven jails by hiding in barrels that had wine and food in before.