Gene,
I'll try to answer your questions in order. Remember that I bought a top of the line system after much research, so my answers in part will be based on the North Coast Engineering (NCE) components.
1. All DCC systems, thanks to NMRA standards, work together, no matter what brand of decoder or command module you are using. So that answers part two of your question also. Brand X works with Brand Y with Brand Z and so forth. My NCE works with decoders from Bachmann, Soundtraxx, QSI and BLI, which are all the decoders I presently have installed, including the sound modules.
2. It is best to isolate the passing siding with insulated rail joiners at the frog end of both turnouts. This way, you can have a positive power feed to the siding rather than rely on just the "power routing" turnout to feed the siding. In any case, you should never feed a turnout from the frog end, which means you will have to put at least one insulated break in the siding, so why not totally isolate it to begin with. All this requires is four plastic rail joiners and one more set of feeder wires to the siding track. Just like a DC hook-up. So, it does require some wiring, but not much as you can see. However, if you don't do this wiring you are asking for a short circuit.
3. The panic button shuts down the whole layout immediately. Now the answer to your question lies in how fast can you type? Depending on the system you have, you either have to hit "select loco" then type in the number to gain control, or you can hit the "recall" button and scroll through the loco numbers by hitting the button repeatedly to gain control. My NCE has a "recall" button which can store up to 99 locos.
In your scenario, I am on 2222 when I see the problem. If there is time in my estimation, I "recall" another loco by hitting the button which brings up let's say 5111, which I can now control and then hit "recall" again and get 4122 to control it. Of course if there are other numbers in between these I will have a lot of button pushing to do, in which case just hitting "select loco" will be a faster way to gain control. Again, how fast can you type? Since I have only 4 engines, the "recall" button is the faster way for me.
Once you have the number on the readout, you have immediate control. You also have the ability to MU or Consist several locos together for those long trains needing a lot of power. These locos are grouped together and controlled as one. You can add or subtract from the MUed engines any time you want ust by adding or subtracting that engine number fromthe consist list.
And the last part of your question was about a derail. I assure you a derail, which usually happens at a turnout, will generally cause a short and therefore an automatic shut down of the system.
Now I suggest you do two things, Gene. Get the Kalmbach book, Easy DCC and also go on line to
www.tonystrainexchange.com and read their "Guide to DCC for Beginners". It is down-loadable.
Hope this helps.
B-) & :x