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There is no particular recommendation. If you have implemented your services properly and independently (see https://blogs.oracle.com/aia/2010/11/aia_11g_best_practices_for_dec.html), you can deploy them in any order and it does not really matter if you have one or multiple DPs as everything gets deployed.
There is nothing really wrong with hand-crafting the DP except that you lose the overall stream of information from start to end in your development lifecycle. But some customers actually decided to do it this way, though.
This file is absolutely key at runtime as services read certain properties (e.g. the actual endpoint of the services that are called) from that file. I would assume your services will fail if you don’t have a valid file on your test environment, i.e. having a section for each of your services.
And yes, the AID takes care of maintaining it. Every service you created with Service Constructor should have a file called AIAServiceConfigurationProperies.xml. When running AID to deploy such a service, it first adjusts the values in that file to match the current environment, then merges the content into AIAConfigurationProperties.xml, and finally uploads it to MDS.
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