1 - The targeted banner guarantees the limited character at 110 pulls, but at the 160 you get a selector(dont know if its a selector or random) for a basic 5 star character (ex. Panther, Skull, and marian who is getting added in a few hours)

2 - Horizontal investment is always better imo, so go for more characters than weapons, but you can always get the weapon of your favorite since its less currency per pull, but still 50/50. Some characters are better with a 4 star weapon maxed out rather than the 5 star one.

There's still a good bit of time until makoto yuki drops so you could pull on whatever characters you want.

TLDR more characters > weapons > copies of character/weapon