It has power-on delay but cannot detect power loss. It has a footswitch to enable/disable, so you are still expected to disable prior to power loss.
The preamplifier has 2 jobs: one is to bring instrument level up to line level for the power amp. Second is a bit of EQ to add some sparkle, just like real guitar preamps with a "bright cap" on the volume or gain pot. See R7, C6, C7 in that schematic. Those can all be tweaked to taste.
Other preamps can be used, of course, as long as they bring the signal up to line level, not instrument level.