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It will work with ADSL and ADSL2 but not with VDSL Infinity without the use of an Openreach modem. You would connect using the WAN port. If you do get Infinity you can buy an Openreach modem from auction sites for about £20.
When you set up the router you will need to enter the username as firstname.lastname@example.org you do not need a password but id the router requires one you can use anything you want.
Yes. The upgrade and installation of an Infinity cabinet (FTTC) does not change anything that you presently have and you can continue to use it as at present.
If you renew contract for 12 months can you not get them to send you a HH4 replacement? It'll save you having to buy a new router when the HH4 seems like a decent piece of kit.
If you go for an Infinity upgrade they should send you a HH5 anyway which is one box solution rather than having an openreach modem AND a HH4 or other router.
Stick with your plan to get a new router. It will be far better than any of the BTHomehubs.