Hi Tomkitten,
1.) This is a bit subjective. Generally speaking though, only for those who have hearing losses that cannot be helped with hearing aids.
2.) They have two parts. One is completely inside the ear (the cochlea is replaced with a mechanical device) and one outside the ear. The outside-the-ear part is attached with a magnet that is imbedded under the skin. Both parts are necessary for the implant to work. The outside-the-ear part can be taken off for showers, swimming, etc.
3.) Hell yeah. This is about the most controversial part about them. They are most emphatically NOT the equivalent of glasses -- get your prescription, see perfectly. They require a long hard training slog and may or may not actually work at the end of it.
I have known many, many people who have received cochlear implants, and the overwhelming majority of the people I know have been disappointed with them (to put it mildly.) One woman came to my office a year after getting them; she had been housebound for a year because they didn't work -- at all -- and she was overcome with depression.
THEY ARE NOT A CURE-ALL.[/b] While the technology is getting better, their success is still very far from being consistent.
I do know one person who considers the implant a "success" -- however, his standards may be very different from yours. He has been deaf his whole life, he signs fluently, has a deaf wife and a deaf son (and a hearing son) who sign fluently. He got an implant and can hear some noises. He still signs with his family, he still uses an interpreter at work. But he can hear some things.
Anyway, ask your audiologist, ask your ENT, and especially check Hearinglossweb for some objective information.
http://www.hearinglossweb.com/
The cochlear implant industry is huge and lucrative and it is hard to get the straight dope even from medical professionals. (Cochlear implants are obscenely expensive but usually covered by insurance, so everyone involved is happy to see the $$.)
Hope that helps, ask if you have further questions.