Wow, lots of miscellaneous comments, but to answer
your questions directly, I've been maintaining several powermac G4s and G5s in a lab and here are my observations:
Long time PPC user here on a budget looking to retire my G4 and buy a G5 on ebay. I am noticing a bit of a slow down on my trusty powermac G4.
Specs...
PowerMac G4 867 single
1.25gb ram
10.4.11/classic
2 fx cards for two old monitors
I was planning on running this thing until it died but it just won't die

. I do notice a bit of a slow down while on the web and playing online java and flash games, iTunes taking longer to load and do anything.

no longer supporting Tiger is getting to me. Plus the boot drive has only 10GB free so I can't really use iMovie anymore. I did everything I know to keep it up to speed; permissions, check to see if I'm paging (I rarely do), run scripts, and even opened it and cleaned out all the dust and cat hair. While I wouldn't call it a dog, I do think it's age is showing. I just ran geekbench and got a 502.
n8
I agree the G4's don't seem to die. If I had a choice, I'd have at least one maxed out G4. You can still get processor upgrades for the G4 on e-bay and possibly some on-line sellers. I've upgraded the processor in 2 Cubes and they have both worked very well.
As for your questions:
1. Reliability: One of the early posters gave the repair statistics for various G5 models, and I would concur with the same experience. Our early 2x2GHz flaked out for a long time and finally stopped working. Several 2x2.7GHz liquid cooled leaked. Several G5s would/will power themselves up from being off for no apparent reason. Also, watch out for video cards that are fan cooled because they are now old and the fans will die.
2. Fan noise: the G5 is louder. Partly because it has more fans and partly because it tends to ramp them up when ever there is more than minimal load on the CPU. At full blast (which does happen) you think you'd have a room fan on high - that's how loud they can get. If you are doing a lot of cpu intensive stuff or even opening and closing things often you'll hear the fans cycle up and down often. For me, it's annoying.
For me, except for a few features such as stacks, quick look, and time machine, I consider 10.4 a superior operating system as compared to 10.5. You won't notice it on a G5, but if you put 10.5 on a G4 it will run slower, and may cause other problems.
So, if you are considering a G5 vs. maintaining/upgrading a G4, I'd seriously look at upgrading your G4. In particular max out your RAM, and look for a dual processor upgrade. For some applications your single 867 MHz CPU is inferior to a dual 500 MHz cpu. Here are some processor upgrades at OWC:
http://eshop.macsales.com/MyOWC/Upgrades.cfm?sort=pop&model=156&type=Processor
Once upgraded, you could run 10.5 if you really wanted to.