Hi Bruce,
4. If the 696 were removed, and the Ifly installed in the panel, will the ifly 720 drive the TruTrak autopilot?
Yes, the 720 can drive your TruTrak. You'll need to buy this cable, once plugged in the iFly 720 will have some NMEA output options under the Setup menu.
5. Should I purchase a new 740 and uAvionix UAT bundle? Any advantages to the 740 over my current 720? are there any premade harness or wiring with the bundle?
The 740 and 740b are very similar platforms. Both are significantly faster and more capable than the 720. Synthetic vision, for example, will work on these units - but not on the 720. Connection to the uAvionix is via WiFi, so there is no wiring required for that. IMO, you would be very happy with an upgrade.
Thanks!
Walter