Can you, or someone on the forum, please help me with these questions/concerns?
This has been already discussed. All his server is doing is bypassing Apple system verification to allow you download and install the update. The update file still come from Apple servers (it would be insane for him to host all the updates). @dosdude1 already said this method is safe, he even ditched his own update tool because this is better.
About the iSight camera, there are reports that virtualbox causing issues with this.