1. Depends on the IDE you are using. If you are not using a Windows IDE (you are using the default 'horrible' one), then no.
2. Anything above 20 fps should give you reasonable animation. TV is only 25 fps isn't it? That doesn't look jerky.
3. They essentially do the same thing and neither has an overall speed advantage over the other. Each have their pros and cons.
Functions have (as you said) local variables and need to have variables passed to them whereas procedures see all variables. One advantage of this is that you don't have to worry about accidentally using variable names more than once.
Functions can only return a single variable whereas any changes to all variables in a procedure stay changed on return.
Function calls can be used as part of statements (like new commands) whereas Gosubs cannot. For example:
X = MyCalcFunc(2,4,3.142) * 12
Some people only ever use functions, but I am like you and prefer Gosubs unless I want to create a 'command-like' function. It's a matter of personal preference.
TDK_Man