I can however answer #2. Oil-based paints are in fact toxic, and known to the State of California to cause cancer. You will see the signs plastered in the oil paints aisle of Blick's and Utrecht stores. This is especially apparent when you consider the name of some colors like "Cadmium red." Most oil paints, if not all, contain lead as well.
That's a little unfair. Using #E30022 on a website doesn't mean the website has cadmium in it, and the same is true for paint - "Cadmium red" is a color, not an ingredient list. Per Wikipedia, "The cadmium pigments have been partially replaced by azo pigments. These have significantly inferior lightfastness, but still good, and they have the advantage of both being cheaper and non-toxic."
http://d4of2brjuv1jo.cloudfront.net/assetfiles/f4fd8b8f-8fb5...
Azo colors, from manufacturers I am familiar with anyway, name their products as such ("Azo Yellow" instead of "Cadmium Yellow").
http://d4of2brjuv1jo.cloudfront.net/assetfiles/bad43b91-5026...
Regarding CSS color names, I would hope that anyone who actually recognizes the word cadmium would be aware that there pixel is not suddenly made of zinc and that their seagreen background has not suddenly become saltwater. Now if it were the other way around, i.e. the names had always been arbitrary and suddenly someone decided it would be a great way to stick hazardous chemicals into things..!
Chinese painters are probably less likely to use toxic pigments than their western peers for reasons of cost - a good quality cadmium paint is two to three times more expensive than a non-toxic substitute.