1. It's very confusing and I'm not sure I completely understand it. However, from what you say, I have some doubts. First of all, a "novel" by definition is not entirely written in dialog; something the length of a novel that would be written in dialog would be a "script," and a long one at that. I don't care if you don't think so or you're not writing it in the format of a script. That only makes it a script that you're too lazy to format.
In addition, it doesn't sound like you have a lot of notion of build-up. There are plenty of interesting ideas in here and plenty of characters, but where are you going with it? What will the climax be? What does it all mean?
2. It could be the greatest way to start or it could be the worst. It depends on how interesting the voices actually are. In general, however, I would favor flopping the first & second chapters. I think it would add an element of humor and suspense if you start by showing us the eulogy and having it be interrupted. That way, we're not bombarded with this weird-*** page. Remember that when people browse for a book, they often make up their mind whether to buy it based on the first page or two. If your first page is so bizarre as to be incomprehensible, the book will not do so well.
3. I doubt it, but I'm a dreadfully boring person. I like straightforward things.
4. The title is fine, but not where you should be focusing your time and energy right now. In the event you finish this and submit it for publishing, a publisher will probably tell you to change the title anyway.
5. No, but you have to be able to talk about it in a more straightforward manner. Right now, it's so all over the place that I don't know what you're talking about a lot of the time. This needs a focused build-up. Additionally, you cannot in good conscience write it as an unformated script and expect it to sell. You write a novel or you write a script. Splitting genres is one of the worst things you can do.