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Like I said you didn't have to put the neutral to earth, some people do it others don't. In some cases where other equipment is connected you might have to put it to earth to get a common reference...

This looks better.

1. You have the earth correct now. If you want to earth the negative side of the output you can if you want.
2. Yes
Also ideally you want individual fuses on the output for...

It's always a good idea to provide an earth connection where one is indicated, such as on the VFD. It's also best to take the the earths to one central point, you don't want to be looping from one...

Yes go with smaller motors and the lower inductance for this machine if you have no intentions of reusing the motors on larger machine.
In general smaller motors spin faster due to lower inductance...

They can all be run from 1x V+ & 1x V- terminal, that's how you wire them, each one uses it's own wires from the power supply to the EM806. What you have not got to do is loop from one to the other....