1) As far as I'm concerned, brands don't mean a lot. If you do buy a hard drive, I'd recommend you buying online just so you can read reviews of the product. There are a lot of generic brands out there, it would actually be easy to create a white list of brands than it is to create a blacklist. Generally, some of the big reliable brands are Seagate, Western Digital (WD), Samsung, and Fujitsu.
This drive got great reviews, and name brand (Seagate), and plenty of storage (500GB)
http://www.newegg.com/Product/Product.aspx?Item=N82E16822148354
2) Most external hard drives connect through the USB 2.0 interface. They usually connect through two USB ports actually. The combined USB ports provide enough power for the external drives, so you DO NOT need any external power supply.
3) I doubt there is a way to retrieve files from a dead, but generally drives work until they are exposed to excessive force, or it may day after several years, but by then you'd probably be waiting to buy a new drive anyway.
4) They are not difficult to set up at all. I believe most are plug and play. If you have ever used a flash drive (aka thumb drive, pen drive, USB drive, or USB stick), I'd imagine the process being very similar. Portable, easy to install, and you can set it up on multiple computers, normally taking only seconds to install/mount per computer. It's actually an ideal way to transfer large amounts of data between computers, or to make system restore points.