Yeah thats been implied since the first season, with the lottery episode. The incident that sent him to the hospital is kinda funny in a morbid and cruel way.
Walt was in My name is Earl last week I don't think he's coming back what with the slow time. The actor would be grown up by the time they hit six months!
I agree, somewhat. Not all of the others are dharma, but have been kidnapped/recruited by those that are part of the dharma initiatve
edit: umm damn, i got distracted. hehe