Ad. 1
I would say, that it is not safe to generate you paperwallet online, at least if we talk about storing more than a few satoshi.
The trick for safe storage is that you and you alone know the private key - and it must not be possible to intercepted or regenerate the key.
One way to do it is to download
https://www.bitaddress.org/ to a USB stick.
And then generating the private key on a offline computer, make sure the wife is out, the curtains are shut, write the key down on a piece of paper, and smash the hard drive after you are done (I know this is a little radical).
Depending on you level of paranoia, you can use clean-never-used-before USB stick - and use a computer with a clean operating system that has never been online.
You can read about it here:
https://bitcointalk.org/index.php?topic=43496.0However you need to have some sort of trust to key generator....
I have puzzling about the digital curtation aspect of how to store BTC on a long term basis (10-20 years).
I thing a paper wallet is a good choice for long term storage, since a piece of paper is rather analog and can survive for at least 20 years, if the paper and pen is of good quatlity. However you have to trust the script that generate the private key... in theory could the script generating a pseudy random keys that can be reproduced.From the point of view that "you cannot trust anyone"; then is the only safe way to generate a key to build your own code generator on a offline computer, and make sure that the randomization is truly stochastic.
Anyway that my 5 cent, you can read a lot about the topic here on the forum.