The examples built do indeed keep on working with non-prohibitive maintenance - the 2nd #2-design engine (built in the 2000s for Nathan Myhrvold), was on display at the CHM in Mountain View for 8 years with daily or twice-daily demonstration runs. It sadly went off display in 2016 (probably to go to Myhrvold's private collection) but I saw the demonstration a couple of times and can answer some of your questions:
1. The concrete computation performed was to use the Finite Difference Method (https://en.wikipedia.org/wiki/Finite_difference_method - hence the "Difference Engine" name) to calculate arbitrary polynomials of degree up to IIRC 10. By using Taylor Series, this method could be used to calculate arbitrary functions, like log and sine. This was in fact the same method used to construct logarithmic tables by hand at the time, and had similar nominal precision; the singular goal was to eliminate the bit errors rampant in the old, manual process.
2. The machine removed not just errors in calculation, but also in typesetting; about half the part-count of the original design was in its printer, which could be configured with all kinds of options for typesetting the results. It would output a "print preview" onto paper locally (this was not publicly demonstrated at the CHM because of the enormous mess of ink spills, but the machinery was run dry), and an identical wax mold ready for use in mass printing. This was because many of the bit errors in the existing log/sine/etc. tables were introduced not by the (human) computers, but by the multiple copying steps involved in transforming calculated values into printed pages.
3. Computation was quite reliable - the machine worked in base 10, and mechanisms were carefully designed to freeze up (and be easily resettable to a known-good state, as demonstrations showed) before introducing errors. As far as I know bit errors were unheard of in the demonstration runs. This reliability, like in later electronic computation, was the motivation for using digital rather than analog logic. (Finickiness was mostly limited to those halting conditions - it proved quite sensitive to clock speed (rate of crank turn), but only by the standards of the hand cranking used in demonstrations; connected up to a steam engine with 19th-century rate governors, input power could have been kept clean enough to run with long MTTF.)