1. What is the development schedule? More specifically: When will the functions be in place described in the OP?

Wallet with integrated smart contracts this week, decentralized marketplace in January. Hedging & Pegging functions during the following months.

2. What makes Bitbay different from Openbazar? Adding smart contracts to it?

See first answer. Especially escrows. Read Halo website. Plus O B is community driven, not for profit driven. Thus the lack of progress.