1) no its not a terrible idea. i doubt he'll drown.
2) with aquarium grade silicon glue it is quite easy to add a divider in the tank that will hold back water. with that said, your solution is much quicker and turn-key. it might just be personal preference
hello and welcome !
that setup looks pretty nice as it is. coconut husk is a fine bedding. there are some that are less messy and dusty. live foods, try dubia, crickets, and meal worms. Search the forum for humid hide and make sure you have something akin to that.