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Me personally, I think the restrictions of type certified radios for free/public (not business or government) is completely stupid. I feel like most people don't know what is what and can easily end up breaking the rules by mistake. The truth is, I believe that while most ham radios are pretty cheap in quality, they are way better than any new part 95 product on the market today. Many of them are more than capable of performing inside the restrictions of GMRS. People should be allow to use them. That said, if someone is using one for GMRS, I couldn't care less, but I wouldn't go on the internet putting in writing that you are doing it and if someone asks me for advice in the forum, there's going to be a "by the book" response from me.

1: Wifi works in the 2.4, 4.9, and 5 GHz band while GMRS is in the UHF (460-470 MHz) band so you shouldn't see any RF interference, however there may be electrical interference if using a cheap transformer. (This would be an audible hum over your voice as you transmit) 2: Midland and Baofengs are ok, (I have a Baofeng that I use as a loaner radio for family members) Personally I prefer Kenwood radios, using 380 portables and 880H mobiles. They are easy to program via computer and have a few features the baofengs and midland's don't have. Recently I started using an 8180H which has even more features on it. It all depends on what you plan to do with your radios. For me, being able to use work frequencies was the reason for upgrading to the 8180. 3: An antenna in the attic does work however just getting it to outside can result in a drastic increase of range. For the past two weeks my antenna was in the attic due to work being done on the roof, it got the signal out but not too far. When I returned it to outside I realized what a difference a sheet of plywood can make lol. 4: As Cleveland said, the traffic you are hearing could have a code or a mix of codes set up, they may also be using a repeater which could let you talk as far as 40 miles away. On top of that, GMRS repeater owners are now adding linking computers and software to their systems which can allow a user from NJ to talk via radio to a user in CA. Information about repeaters and which are linked can be found on the MyGMRS.com site 5: See Cleveland answer Even though I started out as a ham, this site, this community even, has helped teach me so much. When there's a problem I have never seen a group come together to try and figure it out then wait to see if their answer resolved that problem like they do here. This is a great group of guys and gals from all walks of life with experience from the amateur radio community, emergency radio community, and even professional radio techs, so there are no shortages of answers to your questions.

1. interference is always possible, but unlikely w/ your wifi 2. Midland stuff is extremely basic & simple in operation, the baofeng will have more features, but requires more configuration/understanding to use. 3. Antenna in attic is better than none at all, but for what really helps gmrs signal is the antenna height and less obstructions to line of sight 4. You could be hearing a transmission that uses squelch code like Dcs, or you may not be transmitting strong enough to reach them, even though they can reach you 5. You're already here