2) Why would we ever want to teach higher categorical notions of space to undergraduates? We can barely get them out in four years knowing real analysis and abstract algebra. The next stop would be the basic theory of manifolds, not higher topos theory.
3) I looked at Kock's book (the draft of the CUP book on his website). The definitions are more abstract than the ones I would give to undergrads, and consequently harder for them to understand. The appeal is not clear to me.
4) You don't have to change your foundations (meaning ZFC vs. type theory, etc.) to do higher category theory in a reasonable way. Again, go pick up Lurie's books. The exposition would not really be affected by whether you choose type theory or ZFC for a foundation. Let me know if you think there's a counterexample to this claim. (The exposition probably would be affected if you denied the law of excluded middle, for the worse; luckily Lurie doesn't do that.)
5) Foundations are sort of irrelevant here anyway. The point of ZFC is that you can forget about it when actually doing math. If you're thinking about foundations when reading Lurie's books, you're doing something wrong. (Consider: most mathematicians have zero opinion about foundational questions or concepts because they have no bearing on their day to day work.)