Ideally I believe you only want the roots in the water not as high as it is in the picture. You can tie Styrofoam which floats or egg crate to keep the plant out of the water.
Duckweed would be eaten, pothos may get the roots nibbled. Better to keep it in a filter or sump, or at least somewhere in the tank they can't get at it too easily. Water lettuce does require good lighting and air circulation.
Yes. I'd say pothos would be even better because producing all those vines is much more aggressive growth than with peace lilies.. thus, using up even more nitrogen.
Anyone know if swedish ivy would work? I don't care so much about nitrate removal, I just want a vining plant to drape across my 75g that isn't toxic. Philodendrons and pothos plants aren't really safe around small children (my nephews love my tanks).