It is Limited to 1, in both Advanced and Traditional Formats.
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Monster Reborn isn't banned. It is a limited card (meaning only one may be in your deck). It was banned for about a year or two but it has recently been limited.
Yes... you can Special Summon Exodia the Forbidden One by discarding him and using Monster Reborn, but you will not automatically win the duel. Exodia's effect will only work when it and the other four pieces of Exodia are in your hand.
Left Leg of the Forbidden One Right Leg of the Forbidden One Right Arm of the Forbidden One Left Arm of the Forbidden One Exodia of the forbidden One Sangan 3x Royal magical Library Exodia Necross Contract With Exodia Exodus the Forbidden Lord 3x Skelengel Monster Reborn Monster Reincarnation Call of the Haunted 3x Different Dimension Capsule Level Limit Area B Gravity Bind Heart of the underdog 3x Factory of Mass Production 3x Solar Flare Dragon 8x High Defense Normal Monster Pot of Avarice But there can be some variation of it.
No. Exodia the forbidden and the arms and legs are all LIMITED. Which means you can only have one copy of it. :)
They wanted to show off newer cards.