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Question 1: ANY video can be downloaded and thus pirated. So it really doesn't matter if you stream or allow downloads. The only metric I care about is which way helps with rebills (more $). With my specific business model I personally find letting Members download the videos = stronger rebills. That's just me. (We also have feeds that stream-only so really it's a mix of the two.) But it ties into...
Question 2: I use ProxyPass for both password management and security. With ProxyPass there's a single signon which is helpful if Members have access to multiple sites in your network. But the big advantage is it will block Members who use too many IPs to login (sharing their password or using a proxy) and if a Member downloads too much in a single day (20gig, which you can adjust to your needs). Anything over that they must wait until the next day. ProxyPass is also cheaper than Strongbox if you run multiple sites as I do.
Hope that helps. Best of luck.
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