Sounds mostly mental, considering his neighborhood was a fake Good Place neighborhood. But I wouldn't put the physical stuff past him.
Eleanor and Janet both seem to think that he does, or at least did at one point in time (in their past, his future, from what I understand), but I'm skeptical. Playing good is kind of his torture thing, after all.
I don't know. Supposedly she has all knowledge in all universes. But she still only said that he "exhibited signs that he does, in fact, have the capacity to care for and maybe one day help humans". But that was at a different point in his timeline.
As much as I dislike the possibility that he might hurt someone else, there's some reason to believe it might turn out okay. So yes.