Veneer is cut from a log. Birch is always light in color. Other veneer is darker (oak, etc.). Veneer can be stained darker as you are simply working with very thin, real wood.
Yes, I've used this for half inch material. There are jigs that are designed specifically for removing the excess or you can use a razor blade or chisel
No but you can stain it super easy.
Use a standard razor knife
Yes. You iron it on and it sticks to wood and MDF.
I iron it on then stain it.
Standard utility knife.
Can a person just peel and stick this item without ironing
1/16 with hot melt adhesive on it.
I would recommend you seal it with good stain or paint for outdoor use. But once you iron it on -it should stay put.