I do have a paid version of GSX so i guess your answer is no since i have a paid copy of GSX...
You asked if you were required to have the FSDT sceneries to use GSX, so I replied to that one. Having the paid version of GSX is a *requirement* to be able to BUY the Level 2 Expansion. That's why is called "Expansion", it doesn't work without GSX and it cannot even be activated, if you don't own GSX already.
Again, the FSDT airports are in fact a "free zone" so, both GSX and GSX Level 2 will always work there, regardless if they are purchased or not.
In the select destination folder its asking if i want to install GSX into the folder that says c:\program files (x86)\ addon manager... or do I change this destination and put it into the regular program files where Prepar3v4 was installed to where I installed prepar since i no longer use FSX. so when I go straight to program file prepar shows up in that file.
Just accept the default. Not being forced to install "into" the simulator is a big advantage. The only reason why you might want to choose a different folder (and choosing the one the sim is installed into is not a smart choice), is if you don't have enough space on C: so, you can select another drive, like D: E: F: etc, and GSX and all the other FSDT product will all stay there, nice and tidy, without messing your simulator folder.