(1) Yes, it is. What about adding "duplicate and cursor down" as an alternative? Users can choose what suits them best. They can choose both if they want to

(2) I have meant blocks which extends over complete lines, not only to the end of the line. If you paste such block, it inserts below the cursor line instead of inserting at the cursor position.
Line blocks can be "emulated" easily. Well the block will be a "stream block" and you must make sure that you have started the block at the first column of the first line of the block and that you have ended the block at the last char of the last line of the block. Then insert a blank line and paste the block. Line blocks aren't vital but, IMO, they are more natural to a code than stream blocks - which are more natural to an ordinary text.
Some special actions which can be made with a line block:
- move the contents of the block one column left/right
- comment out the block (insert '//' at the beginning of each line)
- uncomment the block (delete '//' from the beginning of each line starting with '//')
Speaking the keyboard interface for the editor, here are some more suggestions for the "Edit - line" section

- delete to the end of line
- move cursor to the end of line
- move cursor to the first nonblank char of the line
- move cursor to the beginning of the line