Since I have some experience with Hetzner:
1. Pings within Europe can be a bit longer than to other providers, they lack peering with some providers. However, nothing noticeable (10-20ms max) and behind cloudflare TTFB wasn't longer than with other providers. Keep in mind that this is central Europe, ~15ms more from the US compared to Google Cloud BE or OVH in France and around ~20-25ms longer latency to the US compared to UK/Ireland. I've never experienced downtime but follow their status on twitter and they sometimes have (announced) maintenance for vhosts, think they don't live migrate customers. But I've also experienced that with AWS.
SEO is dependent on response times and the provider shouldn't make a difference.
2. That shouldn't be an issue and they peer with Amazon in Frankfurt. Expect 20ms round trip per db query (from a European DC). Can make a difference for websites with a lot of small queries. I would keep webserver and database closer together and rather keep Apache also on Hetzner.