1 & 2) well, since the live shows would be more discs, charge more for them than the studio albums. it\'ll help boost studio sales too, theoretically. and merch is definitely a necessity for advertising, but start off with something to make them some money so that they can afford the stuff that costs them money.
as for 3, i don\'t actually believe *they* need to be stepping it up. they\'re up they\'re raging every night. but they need someone not in the band who\'s sole focus is worrying about this kind of stuff so that they can focus on songwriting, playing etc. far too many good, small bands get broken up over this kinda stuff (disagreements, one guy seemingly making decisions for everyone, resentment that not enough end result is appearing, etc). i\'ve never been a fan of the musician/manager combo. the band shouldn\'t have to worry about this, they should have someone else worrying about it. its hard enough to be on the road playing to small crowds without the extra burden of worrying about the business end, too.
now, who that person should be for this particular band, unfortunately, i can\'t answer that one.