When a bell pepper goes bad you can tell easily, so long as it has that 'snap' in it when you bite down then it's eatable, if however it's droopy and when you bite into it, the texture is likened to rubber, well.. it's still okay to eat but I wouldn't want to.
You sure can, I have done it and it's fine. You can try soaking the bell-pepper in water for a few hours, it might crisp back up. It works with celery and other veggies, it might work for a bell-pepper too.
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Other people asked questions on various topics, and are still waiting for answer. Would be great if you can take a sec and answer them