YouTube disables the front page without history enabled.
(media.scored.co)
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I've always just assumed that turning off history means turning off their display of it. They still have their server logs. There's no way for me to know what they've kept, so I just have to assume they have a record.
Turning off the display of history can be useful in itself.
Google has a record of literally every piece of data that they have ever been exposed to. They log everything and will keep it forever.
Yes, that is what I assume. I don't see why you wouldn't unless you just ran out of HD space. Which doesn't seem like a problem for them.
If the NSA can record most of internet traffic, then Google can definitely store everything that comes their way.