1. Not technically, no. Though in Lute & Loot I think there was a feat called "Disguise Spell" that at least kept people from knowing you were casting a spell while "performing."
2. No. The quoted SRD text includes a parenthetical note of examples. On of those is "reciting," which, in theory, means that an Assassin's favorite tag line could be something akin to: Alas, poor Yorick! I knew him, Horatio... right before stabbing the proverbial Yorick's eyes out.
3. I'm betting that it was what Frank said - to keep the arcane spell failure away. Unfortunately, that ability isn't listed under the description of Bardic casting; it's listed under the description of Weapon and Armor Proficiencies.