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1) The free demo will give you all the FM Pro functionality, but if you are serious about developing you should get the developer version, that will give you a lot of tools, like a debugger, custom functions, database design reports and runtimes
2) Yes, your databases stay intact.
3) On a Mac the demo installs the dutch version on my system, the full version has all the available languages.
4) FM 11 is a big change from FM 5 and only the easiest FM5 go without issues. search the technet forum for more details about converting bigger FM 5 files.
Ruben van den Boogaard