Jun, yes and yes,
Ultimately, doing away with the site node structure and replacing it with a CR structure would be neatest - but even for 5.1 that's a LOT of api breakage.
But, it's ultimately the way to go , and CMS would actually be mounted at root - ie. replace/superclass ther subsite package (or something like that - i'm more worried about how to make it work as an installable package first)