It is a proper full-fledged FFP. Though currently limited to IndiGo only. We may see further redemption for award tickets on partner airlines in 2-3 years.
Absolutely, and on top of that, Indigo is a low-cost airline, I doubt they will offer great value for these points.
If they do, the program will be a hit, maybe they will in the beginning to attract new users. Everything feels very blurry right now, even the employees don't know how to value these points as of now.