1. Absolutely fine. There is no law that states that in order to enjoy job portability you must necessarily use your EAD. In fact, in ninety nine percent of the cases I would advise you to transfer on H-1B simply because if there is a problem with your I-485 we are on solid footing to fight it out, otherwise you would be out of status and unlawfully present if your I-485 is denied. Hence definitely keep your H-1B active.
2. That depends. It doesn't have to be a one-on-one match job location. You can move from one state to another as this is a part of AC21 compensation. The only time you will have a problem is if the compensation is unexplained and it's a huge jump. Always ask an attorney who understands your situation to review your file.
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