1) Yes the hood can be repaired.I've done several with a product called Duramix 4036 with good sucess. This is the TPO repair material with an adhesion promotor used with it. I can't remember right now what the hood is made of. There are many plastics out there.
2) Do you need to strip it for a specific reason? Otherwise if it has never been painted before, it won't be a problem topcoating over the factory paint. It's pretty thin, so one more paint job shouldn't be too much film build.Having said that ,don't get too much on it either. The paint is more flexible if it is not too think.
I use a flex agent in my sealer, and my clear in the hoods I do. This isn't completely neccessary for most urethane clears, but it does help with rock chip resistance. If you want to spend the money for it, it is always a good idea.
The color on the hood from the factory is thin enough that I would just wet sand it off with 320 of 400 by hand with a flexible sanding block. I wouldn't use a chemical stripper in it. The heavy solvents can absorb into the plastic and swell it. Possibly distort the plastic too. Again, if it doesn't need stripping, just sand it good.