no it doesnt, Pokemon happiness does not go down if it faints anywhere.
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No, you dont. Just get a Golbat (or a Zubat and itll evolve to Golbat at level 22) and then raise the Golbat with Happiness. I would say give it a soothe bell to hold, feed it the kind of poffins it likes, and battle with it alot. But make sure it doesnt faint. Also there are some berries that can raise its happiness but they also affect stats. Hope this helped! :D
No,it will not affect it because its a ground/water type.
Yes it does. It will however not affect steel type pokemon.
No, friendship will not be affected.
They attract rare Pokemon (ex pickachu and the like)... I'm not sure whether the pokeblock level has any affect... It could, I'm not sure