1) I'm in the middle of setting it up now. It did seem cumbersome, but once I started understanding what I was doing with configuring the Virtual Lab, it really isn't that much to do. Mapping all of the networks and masquerade addresses takes some time. Once the lab is setup, creating a SureBackup job isn't too bad. Create an application group with at least one Domain Controller and maybe a critical SQL server that other servers rely on. Then link it to backup jobs so all other VMs are tested.
2) I have 500+ VMs being backed up in 18 jobs. Since I'm linking the backups jobs. I am running a test against all of the VMs eventually, but some just don't work well in SureBackup due to a Server 2008 (R2) bug with VMXNET3 adapters not keeping their static IP when replicating or doing Surebackup. So I get failures logged, when they aren't really, so the reliability of a report is questionable.
3) For management I'm saying I'm going to test the restores quarterly, but realistically I'm planning on running the jobs every 2 weeks and we keep 31 restore points of once a day backups, so I'll be testing twice a month. Once I see how long the job takes, maybe I"ll do it once a week.