Gday Scott,
To answer your questions -
1) I leave mine to stew in the solution for about 5 minutes but I don't use a timer, deviations don't really matter all that much. I also vary the amount of detergent depending on gunk levels
2) That does look like damage to the coating, however your clean looks pretty good and will still have made a difference particularly for contrast, and
3) you might find you can install the mirror and enjoy reasonably good views despite the damage, until you're ready to send it off for a recoat. I expect a 10" might be marginal in terms of cost between getting it recoated or moving it on* and buying a new one. I know the latter will apply to my 8" when its time is up. Also have close look at those small black bits. If they are mechanical damage going into the actual glass, well that's an even stronger case for a new mirror.
*to a keen ATMer or similar. I wouldn't just chuck it.
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