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Showing off is a legitimate reason (see this guy: http://www.coolestguyinamerica.com/).  However, you can certainly monetize traffic by selling ad space.

Every topic has a niche.  Find what yours is, and own it!  For instance, here's an example of a pest control company who's website is loaded with helpful info... check out their "Pest Library"

http://www.economyexterminators.com/pest-library.html

They've documented and categorized tons of different pests, and have enough detailed information to become an authoritative "source" for info on various pests.  With all the helpful info found in their pest library, they're sure to get some links from somewhere for people looking to learn more about any given pest.

Barring that, infographics are also a popular way of gaining some links.  Think of a need (for information) that isn't currently being met, or at least isn't readily available.  Fill that need, and people will link to you.  Find a niche and take it over.

The color of the text should have no effect on your site's ranking.  As long as you aren't placing white text directly on a white background so that it's invisible to human eyes.

Hiding text within similarly colored backgrounds is an old trick people used to stuff sites full of keywords.  As long as your site's text is visible to humans, you should be okay.

"Essentially" the same file isn't the same as "the same file."  Your best bet is probably to mark one of them (probably mysite.com) with rel=canonical.

Looks to me like an article farm.  Basically, a link directory disguising itself as a blog for purposes of building links.  Probably not the sort of site you actually want a link from.

I would contact the guy who runs it to see if he can be reasonable about not stealing your content.  If he won't comply, I'd report him to who.is like the other poster recommended, and report him to Google here:

http://support.google.com/bin/static.py?hl=en&ts=1114905&page=ts.cs

The godaddy WHOIS report is here:  http://who.godaddy.com/whois.aspx?k=IjNPPd3p/1WMnGjSRP2weA==&domain=caiii.com&prog_id=GoDaddy

Shows it registered to someone named Tran Khanh

Email: khanh.tbk@gmail.com

Good luck!

I would probably go about this by searching all blog and youmoz articles relating to link building.  Click through the authors profiles and see where they work.  Also try checking the profiles of commenters who may have insightful remarks.

This approach lets you read their blogs or articles before you make a decision on who to hire, as well as familiarizes yourself with the various tactics they're likely to try, all the while ensuring it's only mozzers you're looking at.

Anyone can make Facebook business pages, and they are free of charge.  If you log out of Facebook and look at the bottom of the page, there's a small link that says "Create a Page."  You can click on that to get started.  Good luck!

Google vocally has a pretty strict policy about not mixing AdWords with organic results.  I doubt what you suggested is the case, else G could be in some serious trouble with the FTC.