I'll go first (err ok, second):
1) Jeeps are great vehicles to tow. All of them are designed for that. As far as driving one, YMMV.
2) You will need a tow bar, tow bracket for your toad and a braking system. Blue Ox and Roadmaster are the most popular towing systems, providing everything that you need.
3) Yes it is necessary for safety and required by law. You need a breakaway system to stop your toad if it should become disconnected, and you need to use the brakes in your toad to help stop, especially under emergency conditions. Even the big MHs lose braking performance when you stick another 3,500+ lbs behind them.
Larry & Cheryl Oscar, Louie, Ranger & Henry (our Springers)
2010 Allegro RED 38QBA "Harvey"
2009 Honda Element "Towster"