You don't know that the ball ever stops once it starts rolling downhill, not considering friction. There is no reason to believe that the incline is pushed up against a wall which necessarily stops the ball. The only thing you know is that when velocity = 0, by definition, the ball has stopped, even momentarily.
No, it works for net displacement, not total distance. The kinematics equations explicitly takes into account that you are talking about displacement in one dimension (i.e. on a line). The net displacement is 0.3 meters, and the total distance traveled is 0.5 meters. The ball travels 0.4 meters up the hill, then 0.1 meters down the hill to give net displacement of 0.3 meters and total distance of 0.5 meters. If you did two independent equations with t = 4, v0 = 0.2 (1) and t = 2, v0 = 0, then you will see that this is true.