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That is correct too, i only go for high prosperity towns to buy a shop.
All of these affect the productivity of your workshop. If the workshop is not making enough money, the most common and immediate causes are that there are bandits or hostile parties nearby disrupting the villagers with logistics.
Debatable, i have set a smithy in Marunath which has hardwood and iron ore two of the raw materials required for a smith shop and was barely making 200 dinars, changed to pottery shop and in a matter of days was making 500 dinars, the bandits were the same i believe.
In theory it should be like you say but it is not the case in the current state of the game.
There can be a huge advantage by setting other workshops though.
Say there's a town with 2 grain, you set 3 brewery there, beer would be dirty cheap.
Then once you're passing near the area doing your collect of goods to sell, grab all the cheap beer to sell elsewhere for a good profit margin.
You don't need to hold the workshop after you've set them as this, just sell them away.
Also since you get trade exp based on profit margin, then it also helps to lv up trade.
Beyond that, pottery spam (with some distance between your actually workshops)