Old question, but I just rolled over, so here are some quick answers:
Windows Azure SQL Reporting (also called SQL Azure Reporting Services) ends October 31/2014.
Instead, Microsoft recommends a (apparently much less confusing) option to install SSRS on an Azure VM. https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-provision-sql-server/
So, to answer (1) yes, you can run SSRS on Azure VM
(2) - licensing - Azure allows you to directly pay for virtual machines that include SSRS. For example, you can get SQL Server Standard 2012 (including SSRS) on "Small" Server 2012 vm for about Β£ 64 per month - see the prices here http://www.windowsazure.com/en-us/pricing/details/virtual- machines / # sql-server
Just select "new virtual machine" and then "select from gallery" and select an image with SQL Server or Enterprise standard.
(3) Report Viewer component - you are right that the ReportViewer component works as a classic ASP.NET, and not as an MVC element. However, you can mix classic ASP.NET pages with MVC views / controllers in the same project if you are careful. See This Related Question: Will MSFT Report Viewer (rdlc) work with MVC .
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