Is it pretty simple to setup the waves wallet on nano ledger s and have the waves sent to it?
Waves requires that you use the Waves Web Client. This is not developed by Ledger... it's much like using your Ledger Nano S with MyEtherWallet etc.
Also when you do this, always do a tiny amount transfer first from waves wallet to nano ledger s just in case right?
That's up to you... I wouldn't see any reason to if you have been successfully using the Nano S with other currencies and the one you're trying to use has only been supported for like 1 day... but that's just me.
Also i recalled you could only have a few coins in the nano ledger s max. Like if you go over a certain amount, you have to delete that wallet. Is this still true? So if someone wants to have
bitcoin, bitcoin cash , eth, litecoin, waves, neo, straitis, powerledger all in the nano ledger s, this won't work?
It really depends on the mix of currencies being used. They refactored the device apps, such that "similar" currencies... ie. BTC, BCH, LTC, DOGE etc, all used very similar code, so you can install them all without much space usage. However, if you use wildly different currencies that don't share a common codebase, then the device apps are bigger and you're more likely to run into space issues.
NOTE: "deleting" the wallet, does not delete your coins. You're not really deleting the wallet, you're simply removing the coin app from your device. If you then reinstall that specific coin app to the device, the wallet and all your coins will be restored. There is NO danger of coin loss... it is just a mild inconvenience for people who have or trade a lot of different altcoins and want to switch between them all constantly. Having said that, Ledger Live alleviates this a little bit, by at least allowing you to "see" your altcoins regardless of whether or not you have the coin app installed on your Nano S (after you've set it up), as Ledger Live maintains "watching wallets" of all your coins once set up.
Also in terms of security, is it best to keep everything in the nano ledger s as oppose to diversify? Example i keep btc in my nano ledger s but other coins like waves and others, i downloaded their own wallet and keep coins there.
It's hard to beat the security of a hardware wallet... it will generally also be safer, at least from a "hacking" point of view. However, it does then generate a "single point of failure"... if you lose the device or it is damaged, then your coins may not be accessible until you can arrange a replacement or there are other compatible wallets that you can restore the backup seed mnemonic into.
Last time a while back ago, it asked me to install ledger live on my nano ledger s and i never did this. So would this be required first? Also went on the nano ledger s site and notice that it requires to you to do firmware update. So both of these are required before all of this?
Yes. Waves (and a lot of the other altcoins) is not available via the old Ledger Manager Chrome App. You can only get it from the "Manager" within Ledger Live.
Also, even if you didn't want to use waves... having the latest firmware is generally always a good idea.
The thing that is confusing is does the waves wallet need to be used together with the nano ledger s?
Yes, you have to use their web client... Waves is not supported directly within Ledger Live.
https://docs.wavesplatform.com/en/waves-client/account-management/ledger-nano.html