1.In BITS Msc(Tech) have very good placements and are given close to equal preference as BE CSE.
2. See only a few institutes consider don't allow MSc. for their Masters Course rest most of the institutes consider Msc. Main thing is you have to pass entrance tests and interviews (Like GATE in India).
3. No if you are goiing with Msc(Tech) Information System, there is no possibility for a transfer after first year to BE Hons. But how ever if you go with MSc(Hons) then yes there is a provision of transfer to BE Hons.
4. Cutoffs are low because of two reasons :
i) Not many people know about this course as its quite unique and is offered by very less institutes( I have seen only in BITS).
ii)MSc(Tech) provides you a bachelor's degree (Equivalent to BE) but MSc Hons provide you Master's Degree i.e. MSc Hons plus BE Hons. So you will be having two degrees in 5 years.
I would like to give you an advice. Since its a very flexible course so you need to choose subjects during your course. So most of the students choose easy subjects which will fetch them good marks easily instead of choosing real computer subjects which are relatively tough. But at the end during placements they find it difficult to compete with BE CS students and hence get less placements as companies don't do separate placement procedure for BE ME or MSc. So choose your subjects wisely and make maximum use of such course.