Hi Oya,
1. Yes, actually its sap preferred one.
2. Noting wrong, but direct update was useful when we get very less delta records from the source. if we get huge records and mode as direct delta, it will impact loading performance. because in direct update for each records one LUW will form. Already we are using Queued delta, if you want to change to another mode then you need down time and need to do the changes. its bit kind risky one.
But Queued delta was standard one and best to use.
Thanks