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Philip already answered 1 and 2.
3. You can use it in chapters one and three to have a smith turn a magical item into a different magical item. In most cases, this is an improvement. The smiths will give you a list of the items you can create.
4. You can return to Neverwinter (ever), but AFAIK your itemsw won't be there anymore.
5. You can use each recipy as often as you like, as long as you have teh components. You can only do this in a mage's workshop, although there'll be one in most chapters.
6. Other than the workshop and the smiths, no.
Extra:
The axe is not bad. But unless you use the parry attack mode a lot, it'll mostly be a regular +2 axe with some benefits against humans. There are many weapons, and most appear at random. Which abilities are most useful depends on your character and playing style. As a general rule, keep the best weapon you can use, and sell the lesser examples unless you have plans for the future. If you find a weapon that beats the axe, just take that one from then on. Weapon specialisation can be a good move, and if you're considering that you can never go far wrong with an axe or a longsword.
The exotic feat may be wasted, as good magical weapons of that kind are exotic and rare. On the other hand, some of the cooler weapons come from that class. In the end, it's only wasted if you don't use it.
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