1. Quests. You get 1/2xp for the kill then 3x that for RaF but quests give each char 3x.
2. I don't plan on keeping the equipment too up-to-date. At 3x XP you will out level equipment quickly. Better to focus on leveling and getting to 60 IMHO. Then again, I have a 70 on the same server/faction so the 70 grinds gold for AH if I really want to upgrade something.