1. Yes, it is no longer located in the "extras" section in the title screen. Rather, it is in a building that you are given called "Museum" in "My Castle"
2. On a characters birthday, a little cake will appear on your minimap on the lower screen and when you approach them on the top screen, there'll be a little cake floating above their head. When you talk to them, you get the same benefits as Awakening. I would assume it is the same thing with your Avatar.