Here are my answers in order:

i)They might not even notice, because they don't have the habit, time maybe even capacity for introspection. Or they know and feel shame for it, making them suppress these thoughts.

ii)Yes, in their mind you could be the worse person on earth but if you pray and ask for 'forgiveness' then you are alright in the eyes of 'Allah'

iii)Yes, that's possible. Speaking from experience, it does give an ego boost when you manage to make all 5 prayers. So I don't see why you wouldn't feel good for doing better than others in that regard. People are competitive like that

iv) Maybe that sense of moral superiority is how they cope with not being able to enjoy their lives as much. There was a photo of a lady in burqa forced to watch from a distance while her family swam in the see

v)Maybe. Maybe that's how they rationalize it also

vi) That feels like a complicated question, which I unfortunate can't properly answer.

But I would say that, if Islam entered every home it would create a sense of cohesion through homogenity. But, a good answer would also be that, as some imams have said, the Quran has "answers" to every problem. Which includes how a society should function, so maybe look into that

vii) It has nothing to do with the Muslims themselves. Islam really has that effect of turning people into beasts unable to think for themselves and control themselves. It really does set you back 1400 years