Yes to both. Logically, more MF means more drops, hence more chance of getting ilevel63. MF does improve rolls but as I know its negligible, the percentage is really small but it still helps. All items in MP will be ilevel63 rolls. Hence, an ilevel58 item may roll up to its max potential (assuming its rolls perfectly). However, ilevel 63 items will have more afflixes, 6 random rolls hence compared with ilevel58 at 4, so assuming it rolls perfectly, an ilvel63 item will be better than ilevel58 (assuming both rolls perfectly). So, ilevel63 items will still be sought for, except the range of all rolls of all items are now based on the range ilevel63.

Dont know what will happen to the drop rates as the the current rates re based on Acts ..i.e Act 1 drops rates are different with Act 2 and so on. I assume it will be one rate for all since the monster difficulty level is the same through out all 4 acts after 1.05. This my opinion only...

- item level determined by item table. based on Act for MP0. based on another table for MP1 and above.
"another table"?

Thanks for linking that page, was looking for it.