1. Yes it's stronger and more reliable. Some may say that the later 700s are just as strong as the TH350 and that's all fine and dandy but a TH 350 costs $200-400 to rebuild vs. at least twice that for a 700R4.
2. No you won't be able to cruise at 1800 RPM anymore unless you want to cruise at 40 MPH, but you should have never been cruising at that low of an RPM anyway so I doubt you'll care. You'll welcome the increase in power at highway speed.
I suggest you flush your tranny lines throughly as well. Napa sells a flusher bottle.