I've never air dried my MF towels so I cannot comment on it being a factor. I can tell you that I wash mine on warm and always use vinegar as a rinsing / softening agent as well as a second rinse cycle. Then I dry them on sensor dry on low/medium heat and they always come out clean and fluffy.
I've been using force pads for quite a while now and prefer them over the hybrids. They last longer, run cooler, and are easy to line up on the first shot with the hole in the center.
Compounds and polishes for paint have worked just fine for me ever since I started doing corrections quite a while ago. I see no need for specialty polishes for headlights and taillights as of yet.
Hmmm, thats a tough one as I like both Sonax and Menz products. I'd say try both finish polishes and stick with the one that works longest, cleanest, and provides the best gloss for your paint.