I'll answer this quickly, although it may get moved to the non-trad forum. This is only my own opinion.
Hours - lots. During your first two years, you'll spend most of your time outside of class studying. I knew people who didn't go to class who felt that they could get all of their studying done during the day in order to have the evenings free with the family, but I don't know how they did it. For the sake of my sanity, I would usually try to take Friday afternoon and evening off - but the rest of the time, I was working - Saturdays and Sundays included. I lived off sandwiches and food that could be cooked in the microwave - the only times I ever cooked were the first week after test blocks. It's the only time in your life when housework will feel like a recreational break.
Yes, lots of people never go to class and do quite well. It depends on your learning style. I was a reader, which is pretty amenable to working at home. Plus, my school had an extensive online video and audio system for replaying lectures - which I think is pretty common these days. Most allopathic schools don't require attendance - although, especially in your first year, you will probably have some small-group sessions that are mandatory - and, of course, you have to show-up for gross anatomy lab.
Third and fourth year are up and down. Some rotations are pretty much 9-to-5; others involved (for me) 14 hour days and overnight call requirements where you sleep in the hospital (or try to sleep). In addition, you always have the "shelf" exam hanging over your head at the end of rotation - so you will do a great deal of studying and reading articles within your limited time at home. It's not easy.
Unfortunately, no, residencies don't much care about where you live or how settled you are. The positive side is, if you're applying to a residency connected with your own medical school, many residencies view their own graduates favorably. Other than that - you'll go where you match and you have very little control over the process. You're limited to an 80-hour workweek in residency averaged over 4 weeks and most programs fall somewhere between 60 and 80 hours with only one 24-hour period per week off. Some specialties have heavier overnight call requirements than others.
Sorry if this is mostly bad news, but medical school is just about the biggest commitment of time out of your life that you can make. I knew lots of people who didn't work as many hours as I did, but I also knew plenty of people who worked more hours.
