Unfortunately I believe most of the mixed reviews are stemming from the fact that CBT decided to roll the FTTN product under the Fioptics brand. They should have called it something else and made a distinction between FTTN and FTTH.
To answer your questions...
1) The equipment is generally installed in the home. For FTTH there is a small box that splits the TV signal off of the fiber and converts it to coax. In the picture linked below (which is mine) the converter is circled in red. The large box at the bottom (ONT) handles the phone and data signals. The box on top is the battery backup so you can still have phone service if the power goes out.
»imageshack.us/a/img542/3796/fiop ··· hlig.jpg
2) I believe the basic TV service does not require a box. It's what my grandfather who lives near me has. He does not have a set top box. I don't know which TV package starts the requirement of an STB.
3) The router does not need nor does it have a phone jack. The ONT converts and splits data and phone service off separately. You can use your own router in conjunction with the supplied router. If they want to charge you for supplying a wireless router tell them to forget it and just give you wired. When we had ours installed a couple years ago they supplied all the equipment at no charge including a wireless Westell router (which I disabled the wireless on because we have our own). If they're charging people now for supplying a wireless router that's pretty scummy.
4) I've seen few complaints from FTTH users. The vast majority of complaints seem to be coming from people with FTTN.--
Photos By Greg Strong