Hi, Bill-GA
Others may have other anwers but here is what I think
"Q1: Is it normal to have 6 AWG battery wires?"
I think mine are only 8 AWG but heavier is not bad especially if you are adding length. at 12 volts 6 AWG will carry 200 amps over 10 feet. Also since you are going to loose some current capacity with the connection block again not bad to have extra. Is the the hot wire 6 AWG as well?
"Q2: Since it's ground, do I need to cover/tape this small block? Just let it hang in the box?"
No you do not need to cover it but there are a couple of things that you should consider. Since the copper wire and the aluminum block are dissimilar metals you have to keep the connection clean and dry. If salt water or any other electrolite, even the acid from you battery, got into the connection the connection would corrode so I would seal it up. Also if the block ever came in contact the the hot terminal you would have a short.
"Q3: I want to install the switch on the plastic battery box (with the switch handle on the outside, connections inside). It's a sealed switch so no chance of spark? Does this sound reasonable?"
I don't think there is any issue with this as long as nothing can coming in contact with the terminals inside the box to short it out.
Sean