You're really into writing everything in a list format aren't you?
Also, am I sure that this is you, or a "friend" just like the last post ended up being on behalf of your spouse?
Anyhow, to answer your questions in the same list format:
(1) Cut 4 schools. Stick to 6 or less. Every year, applicants think they can apply to a crapload of schools and still do a great job, even when others tell them they will dilute their efforts across too many schools. Take out Kellogg, Wharton, and Haas, and one school from the rest. Also, you know that IESE was founded by Opus Dei? - It really helps being Catholic (both as a student and as an alum of that school).
(2) Build a life, not a resume. If you're focused on window dressing a resume, it'll be obvious that you're window dressing a resume. The resume is a reflection of your achievements, not a *reason* for your achievements. This isn't just a philosophical thing, but a very practical thing, because you'll never be able to do anything worthwhile or meaningful (and people can see right through it) if it's for a piece of paper.
(3) For the US schools, yes. For the Euro schools, no.
(4) No. It won't be a negative, but they aren't evaluating your ability to hit the books (you're an Indian engineering dude with a high GMAT and a MS - they know you're good at academics).
(5) It shouldn't be if it was a technical degree.
(6) See (2). Also, scholarships for a professional degree like an MBA should be a bonus, not an expectation.
(7) INSEAD and LBS are schools I'm quite familiar with; in fact, INSEAD is one of the most frequent schools clients have signed up for aside from the top US schools. I love INSEAD. My clients love INSEAD.
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