The Esplanade is a great little place, not flash, but really friendly and good value. It's got a bit of serious yachting history too. I'll let you find out for yourself, but Sir Thomas Lipton is a major player. ;)
Nah, come on down whist it's all happening, sure there will be crowds, but we're a big little country, plenty of room for visitors, there aren't that many of us here already. If things turn out anything like previous cups here, the atmosphere will be amazing. The courses are all reasonably close...
Careful bro, we're already sinking under the weight of tourists, whilst they're very welcome we don't want too many and with the island overlooking one of the race areas it's probably going to get worse! ;)
Personaly I'd look at hiring a camper van. I don't know whether they're planning on doing it for the AC but when we had the RWC here the council put a large area of the extensive car parking at Westhaven marina aside as a site for camper vans. Probably the dream location, adjacent to the Wynard...