regarding #1: how about hiding them when you're idle? Would this work? (Just pushed an update, please check it)
regarding #2: Is it still not playing? I visited that url http://daydream.fm/places/6a14bd5c7 and it seems to be playing. By the way, is it still not playing? It seems to work on mine. Also, the two youtube links you mentioned seem to be the same, aren't they?
regarding #3: Yeah currently there is no edit currently. I had it before but removed it because things started becoming cluttered with all the buttons, I guess I should add it back. In the meantime, you can "remix" to inherit existing properties from the current one, and delete the old one.