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yes you can use it with a powerfull host, but it's not recomended anyway.
yes, you can use multiple loopback and then forward them to real switches.
sure can be used and you can connect it to other devices using your PC network interface
Can you please be a little bit more elaborative about your question ?
I think you mean can GNS3 be used as a real Lab environment. In fact GNS3 is an EMULATOR software, un like the SIMULATOR sotwares, GNS3 uses a real IOS images, and run these images on your computer's hardware, thus can give you a lab results just like if you work in real network lab.
I hop this answers your question.
I think yes..coz it has a real IOS of routers in its contents !!
Mr Atta Ullah Meer Can you please elaborative more about multiple loopback?