1. No. Do not bottle the fruit with the wine. I will usually stir the wine once a week, then let the fruit settle out, and rack off the wine at the end of four weeks.
2. The fruit is very good at settling out over the last week, but it may need additional time to clear. I have yet to have to re-dose with a clearing agent afterwards.
I usually filter my wines before bottling, so that takes care of any leftover sediment. You will lose some extra wine with this method, when you discard the fruit. If that goes against your liking, then squeeze all the wine out of the soaked fruit and add that back into the wine. It can be a longer, more drawn-out process, but worth the extra effort. I have tried this with several kinds of fruit. The firmer fruits seem to work better. Strawberries (darn them!) fall apart completely, and are hard to clear out afterwards. Blueberries and raisins hold together better. The triple berries added to the DB work great!
Another method for adding flavor would be to make an extract of the fruit. There are several methods for this. Essentially, you add a little water to the fruit, and simmer it in a pot until it is reduced by half. Strain and add the resulting extract to the wine. Do a search for extracts in this forum for more methods.