1) No, absolutely not, never in a million years. At that time, it was very clearly established continuity that Canary and Green Arrow were lovers, and that Arrow looked upon Roy as a son. Which Canary also felt to some degree. When Roy was addicted to drugs, it was Dinah who helped nurse him back to health. She would never, ever, never sleep with him, and he would never, ever, never sleep with her. That was never the nature of their relationship even remotely. There are all kinds of love that don’t lead to sex.
2) Hmm. He’s not way high up on my list of characters that I have stories for. I really enjoyed Devin Grayson’s take on him in that mini-series. I honestly don’t have a quick answer for that, although it’d be fun to have him and Connor Hawke in the same story.