no doubt Sw/Sh is selling well but i doubt kids is a bigger chunk of it compare to let say gen 3. Most of the people i know including my self who bought Sw/Sh are on their 20s or 30s... my friend's kids however dont care about pokemon other than the tv show and cards... but yeah i hope GF would get it together and i still would want a competition for it.
Possible, no way to know for sure, but I don't think they care too much about the age of their players as long as they paying all the same. I hope as well that they improve despite reality pointing the opposite way. It's not the worst thing if they never do though, plenty of great consumer friendly games out there that can be played instead. Tem Tem here appears to be one of them, though I'll wait until the game is finished.