1) Yes, schnabel means "beak" in German. You can see the resemblance of the schnabel forearm to a beak.
2) Not sure exactly what was used. When new they did have a shine to them, yours looks pretty good actually for a gun that was used.
3)
www.oldwestsnakeoil.com is good stuff to hit your stock with once or twice a year. Not too often, but it will help bring a dried out stock back to life.
4) I'd definitely shoot it, it's not a safe queen. The biggest risk to that is getting a crack behind the tang if it doesn't already have one. If the thought of that bothers you, then don't shoot it.
Nice rifle, especially given that it has family history. Enjoy it!
