It most likely is dry rotted from age. Unless it is making a noise or you can move it easily with your hand I would not worry about it. If you have a lot of miles you could put on new shocks, then you would get new bushings. The problem is all the rubber items in the suspension age the same way and all go bad over time.
Might , but with your Tx heat & mine , I had 93 on mine they were brutal looking like yours , wasn't that big o deal , but ya should last longer . Was just searching for rear window weatherstripping S happens to rubber stuff
It looks worst then it actually is. As long as the rubber isn't cracked/falling apart and the shock isn't rattling at the mount then you'll be fine. Its just an aesthetic thing but if it bothers you then it shouldn't take but a few minutes to replace. You can probably find some snazzy red polyurethane ones like Energy Suspension that'll work.