Honda will be continuing to develop their F1 power unit for Red Bull team. This means that we are going to be watching Red Bull drivers to use a car with an improved version of the same Honda engine. And by doing this, Red Bull can be very assertive for the title next season again.
Maybe. It's anyone's guess really which team (if any) will be dominant when the new regulations come in. Mercedes would certainly appear to be the most likely to come out ahead though. As for Red Bull, a lot of their high performance this season was relative - because Mercedes were hit so hard with the changes affecting low-rake cars differently to high-rake, which is not a thing that can quickly be designed out. And another part of Red Bull's performance this year was due to the flexible wing that got banned by the French GP I think. A lot of people notice Mercedes did much better in the second half of the season, and think this was mainly due to a Merc upgrade... but a large part is surely due to the RB downgrade.
I really hope we see several different teams fighting it out next year. We don't want to go back to a situation where one team is by far the best.