Yes, we have had this bug hit us too – multiple times. For now, seems unwise to use.
Yes and no. Under “tcS3 Advanced Configuration” you can choose to automatically remove the local file after upload to S3, and just above that option, you can choose NOT to use fallback, i.e., the file gets served from S3 – whether it is available or not.
Great plugin!
BTW: version with Google Cloud support is available; see the tcs3 page on Github: https://github.com/tc-mccarthy/tcs3/issues/24