I\'m currently looking at the possibilities of storing/using secrets keys in an Android application. I\'ve found Nikolay Elenkov\'s blog very helpful regarding this topic and I\
Yes, user is forced to use lock screen, protected with password, pin, or pattern.
No, once the device is unloked, KeyStore becomes unlocked as well and there's no need to enter additional passwords. However, application should check if the KeyStore is unlocked, because user could disable the lock screen protection in Settings. Once key locked is disabled, KeyStore becomes uninitialized and must be unlocked again.
Several times I faced a strange behavior, when the KeyStore was locked, but I didn't have lock screen protection set up. I was prompted to enter a password or pin code to enter the KeyStore. However, it was not possible, since I didn't have any passwords. I assume some system apps were locking the KeyStore. I had to reset it to re-initialize.
Yes, all keys retrieved from the KeyStore will reside in RAM until garbage-collected or deinitialized. But you can obtain the key each time you need it, not keeping it in some long-living variable.
Unfortunately, I'm not familiar with HW-backed KeyStore. Cannot say anything about it.