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Well yeah.
It's possible to put another hopper above the side hopper and a double chest above that and the top hopper to input both fuel and smeltables, though I'm not too sure how it'll handle logs
Not exactly.
You need a hopper to push into the input slot (i.e. the top), another hopper to push into the fuel slot (i.e. the sides), and one more to pull from the output slot (i.e. the bottom).
There's a long-standing bug where manyullyn's "insatiable" trait bypasses the unbreakable check and continues to use durability.
So just don't use a manyullyn sword blade