I've only been to London on a short, 5 day stay, so I can't answer most of those questions, but I can answer the cost one--London is fucking expensive. The dollar is basically worthless right now, so add that onto London's already high prices... The pound is worth twice what the dollar is, and all the prices there are about what you would expect back in the US--except they are in pounds, and so are twice as expensive. A beer and a sandwich in a bar will cost you $20.
That said, I absolutely love London, as do many others I know, so take that into consideration. I'm not really sure why you're worried about congestion--London didn't seem any more crowded than any other city, and the public transportation there was fabulous.
Good luck!
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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato
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