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The vast majority of European travellers use trains or roads, not air travel.

Actually, air travel is the most common mode of transport in intra-EU travel.

http://ec.europa.eu/eurostat/statistics-explained/index.php/...

Trains are a tiny 6%.

Only if you're arriving from outside of Schengen. Within Schengen, there are only ID checks if the airline themselves have them there to avoid ticket resales.

Sometimes. About 5 years ago, I walked off a plane from Baltimore to Rome and out of the airport like it was a domestic flight. No stamp or anything.