KLR 650, it is pretty heavy in the mud but easy to work on.
Many adventure bikers start taking light, modern, powerful fuel injected bikes for long range trips now, like the WR250 and the KTM 690 Enduro.
I saw some guys struggling hard with GS1200s in sand and mud. If you know you're going to drop the bike a lot, it's probably worth going for a lighter option.
Yes they can. I used hard cases, for future trips I will change to soft luggage though because everything will be ground to dust in hard panniers if you don't pack tightly and ride hard off-road for days. Walter Colebatch designed the "Magadan" soft panniers after riding the Baikal-Amur Mainline, I personally haven't used them yet but will try them for the next trip. If you're into this kind of stuff, check advrider.com.