What was the yield you locked in when you purchased it?  How long have you been holding it?

The savings rates are more and more attractive than i-bonds'.  It may not be a bad idea shorting them.

I dont think the yield will go up.  It probably will stay at a low-end percentage.  I could be wrong. 

That 2% is a pathetic rate.

No.

I remember there is a post in mitbbs money board about when to sell your bond. You can check it out.