I don't work for S8, so I can be wrong. I'm basing on my games and technical experiences.
Answers
1. It should be forever like the dragons in DS and the show ponies in FS2.
2. It holds a gem until you collect it. Then the timer counts down.
3. I don't think gem will expire. My other games didn't. They just stay there till I collect.
4. Best for s8 to answer but by then the sale may have ended. IMHO, it may not work in 1.7.5 since the dispenser is released in 1.7.6. I can't find 1.7.5 in App Store.