Looks like someone hasn't been keeping up with things. WOW accts. have been on ebay for a long time, and people have been known to actually bid on them there. Looks like Blizzard is not doing too much about it either.
1 is correct, it was stated by Faarwolf and Moorgard that long time subscribers must have an active/current account. They have not mentioned how long you must have been with them, but you do have to make sure your acct. is still active and current.