[1] In fact, performance issues with LITIengine rarely have anything to do with memory.
Instead, most of them occur due to CPU-heavy computations (e.g. updating too many particles or scaling lots of images at once). The CPU load is increased compared to other java game libraries due to the fact that we do not implement bindings for OpenGL. While LITIengine per se runs on very low system specs, we have sometimes encountered poor performance when playing our previous games with older PCs.
[2] Our games are wrapped into executables with Launch4j.
[3] Is this a BlizzCon kind of question?
We have sometimes discussed bringing LITIengine to Android, but that means completely rewriting all rendering aspects of the engine since swing and awt are unsupported under Android. Porting an engine to Xbox, Playstation, and Nintendo consoles, on the other hand, would require costly dev kits and an extensive knowledge of the respective platform's hardware, which is why we are not even considering porting to consoles.
We are happy with LITIengine being a PC only game library. Since Java Applets are not really an option anymore and Java Web Start has now been declared deprecated, web deployment with LITIengine is currently not in development either.
[4] We offer the utiLITI tool as an interface between creating worlds and coding their behaviour. The tool comes out of the box with LITIengine. Have a first look at it in our tutorial on loading .tmx maps into LITIengine.