The bills at that level are so cheap that the +5 happiness would make him more. The Labour camps would only be useful if he could swap, and as he doesn't have the citizens to swap he can't.
Get rid of them.
If your nation was deleted by the mods you would have recieved an E-mail telling you why.
If it was deleted due to inactivty then you wouldn't get an e-mail.
Either way the mods won't re-instate your nation.
No.
The reason you have to wait 6 days is because too many people were doing exactly what you're doing and people were just making nations constantly and deleting them till the had the ideal resources.
What are you using for internet? If you're using IE you can right click on it then click properties and it'll tell you how many pixels it is. I'm not sure how to do it in FF though.