Yes, it is safe, the fan that sits in the fireplace is protected with 2000 F insulation, as is the heat shield. Also, the control unit is detachable, so when your fireplace is not in use you can store it out of sight. You may use your gas starter just as you normally would. If you have a gas starter you will not need to put newspaper in the channels of the grate. What you are thinking about is the reflection of visible light.
Heat is radiated back quicker when the shield is no longer reflective.
Yes, you can use the EcoFire just like a normal grate if you lose power. The motor is protected with 2000 insulation. We use only 304 series stainless steel, as it will withstand years of burning wood at high temperatures. The original test units of the EcoFire were put into the field over 10 years ago and are still running strong. I have an old house and fireplace.