A:AnswerGames do play in 4K but you are correct, the console will never play 4K movies. Not buying one, however, is completely your opinion. I bought one and am glad I did. The up scaling makes early games look great (like GTA V). I agree that it's not for everyone.
A:AnswerYes, but it reformats, so you would have to backup your current saves to the cloud, and restore titles and content from the ps store and cloud.