Sounds nice, except that no two manuscripts agree. That's reality.
Yes it is... but that reliability and trustworthiness is not based on a theory of inerrancy, but on it's nature as God's message to us. The meaning, theology and power of each passage is not altered by corruptions to the text.
No. Inerrancy is not required. Furthermore, it is not even mentioned in the 2000 BF&M, indicating that the Conservative Resurgence probably had little to do with inerrancy. The divisive issue seemed to be that the Conservative Resurgence people did not want Jesus to be the criterion by which the Bible is interpreted. That is, what Jesus said and did (as God incarnate) does not personify the teachings of the Old and New Testament*.
*I realize that the claim was that some theologians were claiming support for homosexuality, etc. based on their belief that Jesus did not address the issue, but that totally misrepresents what the "criterion" statement was all about in the 1963 BF&M. Instead of clarifying the criterion statement, the Conservative Resurgence folks tossed the baby out with the bathwater and made the Bible the authority over Christ... the book as the revelation of God, not Jesus Christ. Instead of having a relationship with Christ that is accentuated and nurtured through an inspired book, we are now presented with the concept of having a relationship with an inspired book that tells us about Christ. (If you go back and listen to the floor debate at the SBC when this was discussed, this is made clear.)