Some better than others- I was able to grab a copy of portable office (Office 2007?) that ran fantastic on x86. I also went through the trouble of sandboxing every one I ran due to the unknown packing mechanics... Cool stuff none the less
Yup and they were fantastic! Mac OS X apps can work in much the same way. It's nice being able to download something and know it'll "just work".
Obviously it's terrible for getting security patches. Not entirely sure what to do about that. It would be nice to make package management more consistent across distros but I digress.