Yep, LUA is an an area I do not intend to touch.
Features are part of the main map files, so I include them.
But Units/movement/pathing/scripts are not, so that's where your work will shine.
To 2.:
This is already on my TODO List

Currently I'm coding a GUI for selecting different brushes.
Those brushes will be 8bit images, which will be resized to current brush size.
Texture painting occurs via the same sort of brushes.
There will be options for modulo-painting (repeat pattern), or stamp where you click (splatting).
The image format is not really important, as i can load everything what java can load. At least for small images, like textures or splats this is ok. For 100mb+ textureMaps i use my own Bitmap loader, which directly copies from disk to array, without an intermediate memory image. (Thus only BMP+RAW are supported for this

Airbrush mode is quite complex... I do not think this works without layers. But we will see :)
There will always be the option to save it to disk, and do some photoshopping.
To 3.:
There is already Hydraulic and Thermic erosion included (Press E or T).
Thermic is quite fast, but needs some work to look better.
Hydraulic is a bit slower, but looks really good (in my opinion).
Where can I find info/images of RogerN's erosion stuff?
Erosion is quite fun to code, because it is a kind of mini-simulation of water/rain, solved soil, etc...
I do not see this as competiton too.
As you say, we are working on different aspects anyway.
I made it mainly for my personal entertainment. If it is of use for some people, the better.
When it is in usable state I will upload the code to Spring-SVN anyway, for the community to maintain(or leave dying

@smoth: Feature placement is already done and works. (ok, needs small alignment fixes and x/z rotation based on ground added. But basically its finished)
@All: Did anyone actually test it? Errors? Crashes? (Crappy GUI?

Does it work on linux? osx?