I have been looking into setting up SSL for my blog. There currently no free way to get SSL certificates. There are some free ones but they tend to come with strings and lure you into paid plans. I am not sure if this proposal is the best.
The free version doesn't come with wild card. So if you run multiple stuff off your VPS you will have to upgrade. I currently use self-signed certificate for everything except when I serve content to public I switch to http.
It really depends on what exactly you are talking about. For a Man-in-the-middle attack, your statement is false. For passive dragnet surveillance, your statement is true.
Doesn't really matter, does it? Even if MITM attacks are 99% of all attacks that doesn't leave you any worse of with a self-signed certificate. Better yet you are able to use a root certificate only trusted by most, rather than all, browsers because you secure that much of your traffic (which could easily be the 80+% that runs a modern browser, just not the few virus infected XP machines) which would enable actual innovation among CAs.