In regards to 1, I'd be genuinely surprised if they were. The federal government has a dramatically horrific hiring process, in general. Perhaps it is different for this effort in particular, but for reference, I used to work as a contractor for the ATF. The ATF had decided to terminate the contract of my employer, which meant that the contract would be recompeted.
While the ATF didn't like my company, they liked a few of the people, and tried to get us on a government employees, either because we were good, or because they thought it would ease the transition.
Some of the higher-ups approached me, asked for my resume, and then tailored a job posting from my resume so that they could hire me to keep doing the job I'd been doing for years.
After applying though, I was unable to make it past the first level of H.R., who decided that I was unqualified for the job... possibly due to lack of a degree, though no degree was required by the posting, again, as it had been created from my resume.
The higher-up attempted to work it through, but I gave up before they did and took another position. I told them that if they got it through, to call me, and I'd be happy to consider it, and received a call a full 18 months later, at which point I'd moved on in both body and spirit.
To your point 2, again, I'd be shocked if they were comparable. Private contracting pays generously, but government employees are pay-banded in a rather rigid system. One can eventually make established-startup wages, but rarely without direct reports, as the pay bands demand it.
As well, with sequestration and a less and less elastic federal budget, the government benefits are rapidly dwindling. I live and work in the DC area, and job-hopping is still the preferred way to get a raise, though of course government jobs have the strong benefit of being nearly impossible to be fired from.
Pay freezes, cut conference budgets and crappy equipment have been the norm for the past decade or so, and with continuing resolution, even unpaid furloughs have become more and more common.
Again, I don't have any particular insight to the US Digital Service, but a LOT of experience with government work and contracting, and it's definitely not the panacea it once was, for better or worse.