yes there is no trade skills other then your first aid for some reason lol
you get frostweave bags on the toon, flying skill as well

Yes just use the scroll first, account becomes upgraded to cata, becomes as cancelled but has 10 days free game time, then login make any level 1 class you want, then log back into your bnet, and find the new level 1 and claim rewards to make in a lvl 80, and then if you want, change it to an active account