OK, first off I'm going to again suggest buying Shirlee Kalstone's book on housetraining as it would answer all these questions, some of which need detailed answers.
It is very useful to have something you can go back and refer too as well.
Just briefly -- this is probably a too conservative approach now for her age (you are training her to need to go every two hours!) and also, it is a bit harsh to require a puppy to lie in a bed all the time in the house -- she will never become housetrained if she thinks her only options are going out to toilet or lie on a bed. She also need s a lot more daily activity than that; her playtime shouldn;t only be restricted to short sessions now and then. This is like asking a toddler to sit on a chair and play with a single toy. I'd worry that you would start getting behaviour problems as she must be suppressing a lot of energy and dealing with a lot of boredom for a puppy to focus on just chewing a toy most of the day. For specific questions:
1) You should be working towards 3-5 hours at this stage and varying the times so she doesn't learn to 'need' to pee every two or three hours.
2) I don't think this is reasonable, to be honest. Puppies are not calm and reasonable; they are lively, silly, troublesome, mischievous; and this is a precious time that will end so quickly and should be fun for both of you. She is not having a puppyhood right now -- she is being given the life of an old dog. Even my adults don't lie in a bed the entire time I am in a room -- they play, they chase a cat, they go look for toys. She needs a LOT more stimulation and activity, should be able to play and run and basically, you need to shape your time around allowing her to be a puppy. It's like asking small children to be quietly seen and not heard; to sit on a chair and do nothing. Indoor accidents are PART of the deal of getting a dog -- so what if she has a few mistakes? That is how she learns. If you have rugs down take them up so they don't get damaged. No one who owns a dog has a perfect carpet though. :lol:
3) Get the Kalstone book and that will help explain. As you are not letting her do anything in the rooms she isn't learning to normally move between rooms and become trained to ask to go out or whatever. Being in a bed isn't much different from crating, and just keeping a crate clean isn't the equivalent of being housetrained. Basically once she can wander around a room normally and most of the time NOT have mistakes she is getting housetrained to that room. Once she is generally reliable in one room, you then do the same process of taking her out etc for a second room (again this is why having her in a downstay in a bed is defeating the whole process of housetraining).
4) See Kalstone! But basically -- you need to houseTRAIN her which means letting her have a lot more activity with you supervising 100% of the time when she isn't crated, on your lap, in the bed etc. You need to give *active* focused time to this in other words -- not expect her remain immobile in designated areas so that you know she isn't relieving herself. That isn;t much fin for either of you.
5) She is only a 5 month old puppy -- training takes time and patience. She will slowly absorb what a command for going potty means.
6) No, they don't always do both. They pee more than poop especially as they get older. Young puppies often do both. Adults generally only poop 1-3 times a day.
7) If you want. Just pick a word or phrase.
8 ) You don't need to treat every time but I treated every time til mine were fairly reliable, then only sometimes. Also always verbally praise. I still always praise. In general -- the better the reward the more focused the pup on doing what you want. Housetraining is very important -- hence I gave really nice treats for poops outside as that is what I really wanted them to learn asap!