And when exactly did you see Kirito create a new avatar? He was as surprised by it as everybody else. The ugly dude tried to pay a huge amount of money for it (millions, which makes Kirito's prize from the game look like pocket money). Why would he pay if he could just create one for himself? Obviously the avatars are randomized on account creation and most people get ugly ones. I'm sure the rare female players all get cute ones, though, since Sinon is cute.
Because monsters don't visit shops to buy shielding devices. Monster hunting seems profitable with the droppings from bosses being rare guns and possibly other nice equipment.
Like I said, the light sabers might be just curiosities. They would go well along with beam weapons in style. If you have got money, you can buy a sports car or a Rolex, even though a normal car would get you to places just fine and a normal watch shows time no problem. You know, if I was playing that game, I'd also buy a light saber. Just because I like Star Wars a lot. Sure, it wouldn't be my primary weapon, that would be stupid, but it would be cool to carry around.
Umm... Yeah, if some sucker runs right next to you, a light saber would be much, much better than any guns since you wouldn't need to aim anywhere, just swinging it around would be enough. But just how hard would it be to defeat all the opponents with a melee weapon when they start to fire at you from hundreds of meters away? The most appropriate weapon is the best weapon.