1. Extra solder joint does not matter in most cases. But why not just shorten from one of the PCB sides? This seems like a much simpler approach. Soldering 2" long wires is fiddly and annoying. Soldering two 1"wires is even more annoying, especially if you need to use heat-shrink. It would shrink from the heat of the soldering iron before you have a chance to pull it over the joint.
2. Yes, sure, this is pretty standard.