I think today's generation is very aware of the literary arts, though it may not always be the classics we grew up on. I teach middle school, and my students always have some kind of book on them, or they have their kindle or nook handy. My 9yo son reads daily and frequents the library regularly at his school, sometimes bringing home way too many books :)
I use a lot of emotions and feelings from joyous or tragic events. I believe that bring in real emotions into your writing helps breathe life into your work.
I read both. I kind of let the bad ones roll off my shoulders, but I take their notes with a grain of salt. I know that I have read books that I have disagreed with the negative reviews, and it just means not every story will be everyone's cup of tea.
I started writing in 1st grade. My first story was about the Pluto puff people who lived on the planet. I have never stopped writing. My stories have just become longer and more complex.