What's the significance of enabling the QA flag? I understand it's useful for debug tools but is there much use for a typical end user? Does it make switching firmwares easier?
It allows downgrading/going between FW versions should you decide to it. Basically dehash. Prevents the system from hard-bricking due to mismatch in ROS/SYSCON versions.
Yes and no.
Yes you can install OFW over CFW (4.76-O4.76, 4.76->O3.55) but once you upgrade to any OFW > 3.55 you'd need a flasher to downgrade.
2. 480P I don't believe so, 480i is possible over a component cable.
Both. Composite/Component can do 480I or 480P.
Just noticed it was a PAL console.
In any case, there isn't a way to force 480 on a PAL console without running it through a 2nd device (daisychain) as I don't believe there's any way software/firmware-wise to change that. REX releases come about maybe twice a year or so recently, but seeing as there probably won't be many more PS3 FW releases, I wouldn't count on it.
http://manuals.playstation.net/document/en/ps3/current/settings/videooutput.html