1) Backups should not hurt your laser more or less than retail copies, as long as you use good quality media. Know that v12 and v13 slims have a tendancy to fry the lens units very quickly unless you install a
slim fix chip.
2) On Swap Magic 3.8, the final version, like 99% of all games will work on them. The only exceptions are dual-layer games. Those need to be downsampled or split to single layer discs to work. Also there are a few other games that have issues like Devil May Cry 1, where it freezes unless you mash the start button at the logo screens.
3) It should be pretty easy stuff. I mine came pre-installed but it seems easy. Just know you can always rig the lid switches inside the ps2 yourself as a last resort, as long as you dont mind voiding the warranty.
4) If you haven't dont much soldering, then mod chips are out of the question. HDCombo is a little less difficult, but still not an easy task. Slim PS2s cannot be software exploited, so forget about that. Swap Magic is your best option for some casual backup and import gaming.
5) SM discs can still be found online here and there. These guys didn't fail me when I ordered something recently, so I recommend them. Be warned these are 3.6 and not 3.8, but the difference is minor I believe.
http://www.mod-chip.bz/catalog/swap-mag ... 7d9dcc5a14
Edit: Wiki actually calls 3.6 the better version., Interesting.
Recently, the makers of Swap Magic have released Swap Magic v3.8, also known as CODER, which adds the ability of loading Action Replay cheats to the booted game. However, some users have complained that CODER has some compatibility issues as well as known bugs. For example, some games that work on v3.6 do not work with CODER. Consequently, v3.6 remains the most popular version of Swap Magic.