FWIW, I change mine annually (in fact, I'm due to change it soon)...and I do the coolant filter and the fuel filter at the same time. Makes things easier for me

I've been meaning to cut one apart, but haven't actually done so yet...
Does it matter which hose is bypassed to the inlet or outlet? Can I have the hose going to the water pump on the outlet side?
I don't think it really makes a big difference. The big advantage I'd see for putting it on the inlet side of the heater core is that there'll be that much less crud going into the heater core to clog it up. Also, IMHO if you run the inlet hose for the filter from the inlet hose for the heater core and run the outlet hose to the outlet hose for the core, it'll make the plumbing simpler.
BTW, the tech article shows a bunch of hose fittings coming from the filter head. All you NEED is a T-fitting and the shutoff valves (and, you don't really NEED the shutoff valves per se, but I thought it'd be nice to have). I put the other fittings on only so that I wouldn't have to bend the hose 90 degrees in a short space and risk kinking them. This reduces the stress on the hoses, and will hopefully help them to live longer.