Food for thought is always welcome.
Comments on your points:
1) I realize that including the respondents which have not answered one or more questions might make for poor inference, but they account for about 0.1% of the total respondents, so I just thought it wouldn't matter much.
2) Combining the variables to an index was a prerequisite in the assignment, I used factor analysis and Cronbach's alpha to determine what variables to include in the index.
3) The scale goes from 1-5, but represents to what degree the respondents agree with a number of statements, hence 1 equals "does not agree at all" and 5 is "totally agrees". This means we cannot state that the difference between 1 and 2 is the same as between 3 and 4, or that 4 is twice as good as 2.
I'm leaning towards binary logistic regression, as I'm looking to find IF the explanatory variables has an impact on my response variable (which I then split in 2 to make it binary), and not to what degree the explanatory variables has an impact.