A: The 5 points of the NW counts into the total for immediate KO since the
condition is being checked after the attack has hit.  So any Character with
10 points on them (including Power cards on the X-Babies' records) is
susceptible to easy KO from an NW Special attack.

A: Yes, if played from anywhere other than the Battlesite (must be from X-Babies on the Front Line of your Team, in other words), "Li'l Iceman" and other KL Specials are an easier and quicker way to say "shoo, get outta here" to the Devourer Of Worlds.

A: Correct

Q: Or, do I play the card out  of hand, any time after GQ is KO'd?

A: Wrong

Q: Also, does the exchange count as a full turn (meaning the card actually takes two turns to play),

A: Correct

Q: or can I  attack immediately after the exchange?

A: Wrong

Q: When can the card be negated?

A: (1) At the time it is played (2) While it sits on the table and (3) When it is played

A: Yes

If so, would power card hits affect them, since technically it would be redirected damage?

Third, how does the Warpath card work-is it, each turn move a card, or this turn, move all, and is it a choice-may you choose not to move hits?

And finally, after all hits have been moved, next turn, assuming it means that they are all moved in one turn, which I am assuming for the moment, is the card still in play so that in the future you can still move cards to X-Babies (Or Warpath)?

A: Thunderbird's * ULTIMATE SACRIFICE (NQ) <XM> {R} [OPD]
Move any 1 Hit from Teammate to Thunderbird. Repeat until Thunderbird is KO'd or all Hits are on Thunderbird. Does not affect Venture Total. May be played from Reserve.

Your scenarios all seem to work, except for the "still in play" part.  It is a one-turn instant effect and the card is done.  Thunderbird is on the Krakoa Location card, so build that Battlesite and play Ultimate Sacrifice from it to move hits to the Babies in Reserve.  Power card hits moved back
to them would not count toward their KO because of their Inherent.  Now that you see the exact wording on the card you can see that there's no optional moving, on the turn that you play it you have to keep moving hits back until all the hits are back there or a KO happens.  So in the Babies'
case, just move all of the Power cards first, then move as many of the biggest non-Power card hits as possible.

In case you want to see it again, here's what OPStaff had to say on clarification of how Ultimate Sacrifice works in the last OPAQ&A:

"each hit gets moved, one at a time, onto Thunderbird until he is KO'd. Here's another example, that might illustrate it better: Let's say that your Front Line has 4 hits on it - 2 energy, 1 fighting, and 1 strength. If you move the strength and fighting ones first, then the first energy
one you move will KO Thunderbird (leaving the second Energy hit still on the record of whoever had it). On the other hand, if you move the 2 energy hits, and then move the fighting hit and then the strength, you would be able to move all 4 hits before Thunderbird succumbs to KO. (This example
assumes that the 4 hits don't add up to 20 to Cumulative KO him)."

A: You are correct - each hit gets moved, one at a time, onto Thunderbird until he is KO'd. Here's another example, that might illustrate it better:
Let's say that your Front Line has 4 hits on it - 2 energy, 1 fighting, and 1 strength. If you move the strength and fighting ones first, then the first energy one you move will KO Thunderbird (leaving the second Energy hit still on the record of whoever had it). On the other hand, if you move the 2 energy hits, and then move the fighting hit and then the strength, you would be able to move all 4 hits before Thunderbird succumbs to KO. (This example assumes that the 4 hits don't add up to 20 to Cumulative KO him).

A: Yes.

 Q: Specials (such as Dazzler's new one), Danger Room's Aspect and X-World's Inherent that prevent cards from being affected by specials already in play.  Is this just the defense or does this include specials like Pile it On?  What about Charm or KC?  Do these cards allow targeting that would not normally be possible?

A: What it means is that any Specials which are currently in play are "not in play" when this  Special is launched as an attack. If there were a Special that prevented the character from being attacked, or forced the opponent to target a particular character, it would be as if those Specials
were not in play and anyone could be targeted. On the other hand, something like Pile It On, which alters Strong Guy's ability to be KO'd would be affected when the card was launched, but would still be in effectonce it landed, so it would not KO him if he took that hit as a spectrumKO.

A: No. That is an error. It is the same exact mechanic as Prof X. I will let the higher ups know that the word needs to be passed along. Freelance Spy is a battle Duration only.

A: Correct

A: Correct.

A: Yes. Krakoa is not a target character. It is a location.

A: Yes.

A: Firstly, it is only -1 to attacks, so the value, if it hits would not be affected. Secondly, you can make a level 0 attack. It needs to be defended with something or it hits. Its still an icon. 

A: Yes.