regarding Q2 (upgrade via TFTP or USB):
For using TFTP upgrade, you will have to establish a working network connection first. On a notebook, you will have to set up a static IP, a TFTP server, connect FGT and NB via cable (find a free port on FGT), check connectivity from NB and from FGT side. All of this takes considerably more time than inserting a USB stick, check the auto-install settings, and reboot the FGT.
And preparing and inserting a USB stick can be done by nearly anybody, even without networking skills ('a helping hand'), which can be very convenient if the FGT is in a remote location.
So, I would not denounce the auto-install feature in general. Can be very efficient, for instance when new FGTs arrive and need to be upgraded to a target version at the very beginning. auto-install with 'image.out' and 'fgt_system.conf' settings is enabled by default after factory reset, and thus at delivery from distribution.
Just my 2 cents...