4) There doesn't seem to be much use in upgrading to the VIIC from the VIIB from the information the game gives. Am I to understand that the VIIC has a thicker hull and will withstand more damage from depth charges in addition to its deeper crush depth? If not, I might just stick with the B.
There is a difference,the 'C' model has far more up-grade options for use later in the war,different turms give you better AA gun setups should you get caught on the surface

If you intend to stick with a singal U-boot till the bitter end(should you be lucky

) then the 'C' model is the best option