1 Yes, the book has a fair amount of example XSLT code, including one big almost-real-world transformation stylesheet for a sample web site.
2 Yes, the book covers using XSLT for producing other output formats (bitmap images, PDF, Flash) as well as converting documents from various non-XML formats (
word processors, plain text).
3 Yes, a big chapter is devoted to all kinds of XML/XSLT software, and many of the reviewed tools are open source.