Yes, it will makes calls.
No, 3G will not work. Edge however, should.
Yes, you will be able to update it manually using motorola's update guide.
Google talk works on 2.3.4
you can just install it. the blur version is titled BlurEmail.apk. if a conflict were to arise - it would ask you to overwrite. the system identifies apps differently so just renaming it wont change how it installs.
ex. Google+ shows up as "Goog...
I have not experienced any problems. The zoom is very responsive
CORRECTION: it does support the 2100 3G frequency. I didn't understand the whole WCDMA vs GSM thing correctly