Hi Scott,
All good questions. here's my take:
1) you could ditch a legacy PBX for OCS. There are some tradeoffs, but you can certainly do it.
2) There are OCS-compatible gateways that can handle PSTN connections. This is the official MS site listing those gateways: http://technet.microsoft.com/en-us/office/bb735838.aspx
3) There is no OCS E911 solution yet
4) The only handsets supported by OCS are MS/OCS approved. "Standard" SIP phones don't have the proper "MS extensions" to SIP. Although MS publishes the requirements for anyone wanting to create phones for OCS, as far as I know only Polycom and Nortel have produced OCS-Specific IP handsets. A few other vendors have come out with USB phones, though. http://blog.tmcnet.com/blog/tom-keating/microsoft/microsoft-office-communications-server-2007-optimized-ip-devices.asp
But bottom line: you can replace a PBX with OCS, but you should just know all the requirements of the PBX and make sure that OCS meets them. For example, OCS doesn't have hunt group functionality and doesn't support shared line appearances (although I understand that these are being worked on and considered for upcoming releases).
I've found OCS to be an especially good solution for mobile workers ("information workers") who are comfortable communicating w/out using a traditional handset.
Regards,
Matt