[stevet47]

1, They are called paddle shifters, and like the others said, it gives you a little more control over the transmission than an automatic without them, but it is still an auto. If you put it in 'S' or Sport mode, it gives you even a little more control, but unlike a full manual, it won't let you stall it, it will automatically downshift if you forget. Basically, it gives you the ease of an auto with some (not all) of the benefits of a manual. If you enjoy spirited driving and having total control, go for the manual, otherwise I think the auto is the best choice.

2, Don't know about the consumer reports thing, but like others have said, the Fits are under rated anyway. You'll be happy with the mileage.

3, Bulbs can easily be changed and the height can easily be adjusted (We could easily walk you through it with pictures, dont worry, its not hard). The first thing I would do is adjust the bulbs up, THEN if you still think they are underpowered is change the bulbs. You do NOT want bulbs with a blue tint, or anything that says it looks like HIDs or has a color rating like 6000k, 8000k etc. on the box (pretending to be HIDs). Nightbreakers, and Silverstar Ultras would all be good choices.
Also, since you are getting the Sport, you will have foglights which should help some, with the base model you don't have those, so even less light would be on the road.

4, Yes, you can fold them in by hand.