It definitely did not go well for them, though; the community were not fans and they promptly went back to Twitch after their year was up. They had to have paid a pretty penny to get that deal inked!
2 Remember FarmVille or Plants vs Zombies?
I don't see how Farmville is relevant. Mobile games and Twitch streams don't see to be anything alike.
Letting streamers utilize their existing social network is a potential game change for early channel growth.
Exactly. FB Gaming seems to be very focused on Mobile Games and other typical Facebook-Games (makes sense), not so much on Console and PC-Games.
Considering the culture of users it also makes sense. Facebook is more for casual games, who play something on the side, but don't give much for the whole culture, dedication and stuff. Twitch is more embracing the whole core-gamer-culture and youth, making it quite hard to be accessable for everyone else.