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In the past I made a series of weedless hard frogs using small disc magnets. I painted them with Createx water based paints, and top coated them with Solarez UV resin. I found I had to top coat them to keep them from rusting. I got the magnets here: https://www.apexmagnets.com/?utm_source=remarkety&utm_medium=email&utm_campaign=October_Promo_1_2022&utm_content=&_rmId=2nv693l2wgfYoe225DPVInron1r1P3cBxGKENDKG

Everyone I have spoken with say the magnet thing turns into a giant PITA and seems to be more trouble than it's worth and no one stuck with them. . For a top hook I would agree with Barry about the groove or slot with some tubing to tighten the fit. You can follow what Roman Made did with the Negotiator Custom. The one in the pics has a homemade harness, OG's come with an assist line harness with tubing around the assist line and the line tie part of the hook to ensure a tight fight in the slot for the whole harness.

Yes it has been done. The paint and clear coat have little to no effect. https://www.kjmagnetics.com/products.asp?cat=1

You can grind the face of diagonal cutters flush to the jaw edge, so they are flush cutters.

One of the reasons I use a small swivel when fishing in-lines is because they all spin around. The only in-line I ever used that didn't completely turn much during the retrieve was the Mepps Comet with the minnow. While it didn't spin a lot the fact is that it still did. I think you did the right thing in using a buoyant material on top of the hook to keep it riding up. That is probably the best way to keep the fly oriented the right way but it will still spin sometimes, especially in current.

Victory hooks are coming out with these soon https://www.victoryhooks.com/hook-details.php?model=11886