It's a technology demonstrator. They are testing a technology. For the reading challenged:
The X-65 will be built with two sets of control actuators – traditional flaps and rudders as well as AFC effectors embedded across all the lifting surfaces. This will both minimize risk and maximize the program’s insight into control effectiveness. The plane’s performance with traditional control surfaces will serve as a baseline; successive tests will selectively lock down moving surfaces, using AFC effectors instead.
Large aircraft have APUs and/or battery backups so that they can still be controlled if the engine(s) die.
Maybe. It may eventually have a RAM air turbine (https://en.wikipedia.org/wiki/Ram_air_turbine) to generate electricity (possibly also to directly get compressed air)
They may also only use such a device to compress air, and power the controls with a relatively small emergency battery.
I think none of those will be ideal, but modern fighters already are unstable in flight, so this doesn’t look like completely new territory to me.
I for one would not be worried about a slightly higher possibility of getting hit by a falling plane, unless this system was provably very unreliable or something.
Also, they probably get more research funding.