1- Do I need root to install this ROM?

Yes.

2- Do I have to wipe to install this ROM?

Yes, if you come from other devs ROM. No if you are updating from a previous CE version.

3- Installing this ROM will i loose all my data?

If you wipe you will loose everything (you can restore some if you used backup service from original HTC Rom and synced with google services).

4- I can’t find a system application i like, can i install it?

Yes, you need to flash a custom update.zip in recovery/ROM Manager. Follow these instructions or these.

5- Can ADW.launcher be removed?

No, ADW.launcher is the only launcher app installed in system folder. If you manage to remove/replace it, read FAQ number 4.