The instruction says there is no need to install Lazarus and that the installer should be run only once. Bearing that in mind, the user who wants to run two or more versions needs a simple way to "unpack" the files from the snapshot version but, since it's an EXE file and not an archive, that looks impossible. I haven't managed to do anything much with Lazarus yet, so I may just remove my original installation and install the snapshot version instead. (Is it likely that an official version with FPC 2.6.1 will be released soon?)
1. The instructions on the wiki probably use this scenario:
a version installed by official stable Lazarus installer
b Lazarus compiled from subversion/current source code/svn
Then, indeed, you needn't run the installer again. However, if you use
a version installed by official stable Lazarus installer
b version installed by Lazarus snapshot installer
yes, of course, you'd need to run that installer in b)
I can see though why you are confused - IMO the installation pages are a bit of a mess mixing various concepts. However, I've given up trying to fix them as people kept putting in their own specific workflows as opposed to clarifying and unifying existing details.
2. I'd say just installing a single version using the current FPC 2.6.1 snapshot installer is a good idea. FPC 2.6.1 is more stable/bug free than 2.6.0 (used by the official installer) and the basis for the soon-to-be-released FPC 2.6.2.
When a new official Laz 1.x+FPC2.6.2 is released, you'd be able to just install that over your existing version.