1. Yes, the second form can look like a normal human and gradually accrue traits, or you can stack them on top of your existing traits, or the like! It's a big beefy reward, and thus can be flexible.

2. Yes, it is indeed like the main monster! It's a very big list of traits: 6 starting ones, 6 unlockable, and ANOTHER 6 that can be taken from other monster types! Again, given the big amount of points, it should have a lot of customization!

And yes, that is a good option with shifting between forms!