lets start with the points..
1) Yes, almost all dogs will be fine with other animals if they are raised with them, so not to worry!
2) They are also relatively easy to train, as they are very intelligent and sensitive to what you think of them. Just make sure that you assert yourself as their authority from the beginning and teach him his commands at an early age, and he will be the model dog.
3) I had a lab on that much yard, and believe me, it is plenty. Just make sure that it is properly fenced, so that you can keep your pup from getting itself into bad situations!
4) You can do it, but it might almost be mean. Your dog won't understand why he is suddenly kicked out and "abandoned" by his family, and may become depressed and even develop some bad habits. The best thing to do is to treat him the same from day one, always being consistent about what he can and cannot do. This makes a stable, obedient pet. They are fine both inside and outside, but it might be best for you to just pick one.
It sounds like a GSP should be perfect for you. they are naturally very protective over their property and family, and will keep you safe if danger presents itself. The coyotes will definately be a bit more deterred, but again, you will want to have a solid fence in place so that your dog doesn't get too caught up in chasing them and run away!
As far as him licking your hands "and stuff", it really depends on the dog. My dog has never licked anything but his food bowl and his feet his entire life.(i don't know why) But german shepherds are not usually the hyperactive cover-you-with-drool kind of dog. It might affectionately give you a single lick while sitting or laying next to you, but thats about the end of it. And if you show him his boundaries, he will never jump up on you or do anything like that unless you let him do it. Be prepared for the puppyhood/juvenile stages though, because they usually are pretty crazy then!! But if you stick it out, they will mellow out and be perfect.