Dead players will be put into observer mode. The rounds will be timed, and i am not exactly sure about the spectators. We may change or add that feature. The rounds are timed and it is able to play pong while you are playing else you will spectate untill a new round starts. Once you advance in rank you can pick characters from a bigger choice.
Characters ARE different because different ones start off with different weapons.
Not as different as a scout from Hw but different. The selected character also determines what weapons are available for selection. Different characters have different skills and abilities. A character may be fast, but with bad aim. Also, different characters have a different choice of weapons.