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The only business not open is the waterparks.

The best time is as early in the morning as you can get up. Usually at sunrise before people come out and start gathering them all up.  I've yet to find any really special sea shells in all my years of coming to OC.

I was just there this past weekend, and the ocean water is COLD!  I don't think the mild winter will make much of a change in the water temps since they depend on ocean currents more than external temperatures.

3/4 of the 45th St. Village has been replaced with a new restaurant called the Tap House and a soon to be opened new restaurant called OC Steamers.  The old part is now a huge Sunsations.  There will be other things going in as well in the future.

No sorry.  The tram won't start running until Springfest weekend in May, and then not again until Memorial Day weekend.  The OC bus runs 24/7 though and it's only $1.00 per ride or $3.00 for an all day pass.

Usually highs in the low 60's to low 70's and lows in the low 50's to 60 degrees. Of course, it's hard to predict if there would be a storm that could change those numbers.  The ocean water is still too  cold to swim in.

There are so many in OC it's hard to name just one or two. Some I suggest are:

West Ocean City:
Francis Scott Key
Comfort Inn and Suites

Boardwalk area:
Commander Motel
Monte Carlo
Tidelands Caribbean
Courtyard by Marriott
Holiday Inn and Suites (my personal fav)
The Spinnaker Motel
 Grand Hotel Ocean City
Howard Johnson

Off the boardwalk, but on the beach:

Dunes Motel
Dunes Manor Hotel
Rodeway Inn Oceanfront
Holiday Inn Oceanfront
Castle in the Sand
Quality Inn and Suites on 33rd St.

And in North Ocean City (still on the beach)
Princess Royale
Carousel Hotel
Clarion Resorts Fontainbleau

I've tried to suggest hotels in all price ranges.  Hopefully one will suit your needs.  Check out www.ococean.com/rodney-saves/accomodations   or  www.oceancity.com/where-to-stay    or  www.ocisfree.com  to help you find specials and freebies to help save some money.

May 17th will be very active since that's the start of Cruisin OC Weekend. You'll find almost everything open then, although the rides may not open until Friday for the weekend. All of the shops will be up and running. Be sure to head for the inlet parking lot and check out all the cars.  That's a great weekend to visit.

No, sorry.  The rides don't open until May.  However, you'll find things like Planet Maze for laser tag, Baja Amusements for go karts, and some mini golf courses open. You can also rent bicycles and ride on the boardwalk, or go ice skating at the Carousel Hotel, tour the Life Saving Station Museum at the inlet, or take a ride to Assateague and see the ponies that live there. 
As for dining, you'll find many, many places open.  We had no trouble finding places to dine last weekend.  Try Fager's Island for a wonderful dinner.

I'm guessing they're all at the nests on Assateague or the small islands around the bay till they learn to fly. I'm sure many of those that you see are young, but not quite babies any more.