FIOS is the latest generation of bundling TV,Internet, VOIP phone FIOS is Fiber Optic.
FIOS is literary a ball of wire that has a thousand of cables at different frequencies that basically connect to your house using Fiber which is light waves.
Fiber is a different animal to work with from normal networking DSL.
1. I think the only thing they have to do is route the fiber into a box and set up as normal. Now only specialize people can cut and terminate fiber cable because its very sensitive. . That why you have 4-6 hour installed time. I don't know if they add a filer for your phones
2. You basically have to switch to the new router to get FIOS. Depending on Tier level internet speeds you may have to upgrade Wireless N and gigabyte internet to see the difference in speed but i would wait until after it setup before I switch out routers and things. You can still be connected at g speed and have fiber internet. the 54mbps is the maximum throughout that you achieve.
Yes FIOS really better than DSL because you are going to make a update from wires to light waves.
Here is some information about FIOS. http://en.wikipedia.org/wiki/Verizon_FiOS
I want FIOS but don't live in a city