It is neither good nor bad to have overlapping toes. It could be inconvenient, unsightly or uncomfortable but it is not a condition that necessitates a value judgment.
It might be. I do, and my podiatrist recommended surgery as the condition rarely improves and often gets worse. That said, I'm not getting the surgery. :)
It depends on the cause of the condition and severity. The condition could cause chronic pain from crowding, only your doctor would be able to tell you for sure.