1)
a) Unless you started with Minor Heal or Cure Wounds, they have little to no use beyond level 1. Outside of their use in crafting other potions, that is. If you did start with either Minor Heal or Cure Wounds, they are not terribly useful outside of crafting other potions.
b) Neither.
c) They are much weaker.

2)
a) More
b) I am ambivalent about this suggestion.
c) Less

For what it's worth:
In my ten playthroughs (five complete), I have used exactly four healing potions. All were self-crafted large potions, all made on the spot, and all in rogue/ranger only games. In all other cases, a spell was generally more useful.

In terms of other potions, other than invisibility potions, I have only made use of STR, CON, SPD, PER, and INT potions. None of the others are terribly useful outside of being ingredients in crafting recipes.

Please do not read this as "Spells OP." That is not the intent I am trying to convey at all. Rather, my intent is, "Potions UP"