IC means Insulated Ceiling. A non-IC can needs the insulation pulled back away from it so it won't overheat. An IC can may touch the insulation.
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Recessed lights would be considered a penetration in the fire rated system.
IC recessed fixtures can be covered with insulation. Since insulation can be in direct contact with the fixture housing they reduce energy loss. The old type fixtures had to have a box of non combustable material built over the fixture for fire-proofing. Recessed fixtures have come a long way.
Yes. I am assuming this is a residential question. A better answer is...if the 8 recessed lights draw fewer than 16 amps together, it is good.
Yes you can, that is the easy part, you have to close the opening from 6 inches to 4 inches.
Yes, you can.