1.- You can interface the LCDC module with larger displays however the controller will only send a 800x600 image, leaving the rest of the display inactive.
2.- As you can see in the following table extracted from the Reference manual, the LCDC module retains full functionality in VLPR and VLPW

3.- I'm afraid the K70 LCDC module can only interface with graphic displays, however you can use any of the GPIO ports to achieve segment LCD communication.