Hi Gerald.

These are all difficult questions, so no ultimate satisfactory resolution is possible.

We do indeed distinguish between things that are alive and that are not alive, but are we right to do so? Your definition of life (in agreement with scientific thinking) is based on the assumption that there is a difference.

According to idealist thinking, there are different levels of manifestation. The lowest levels appear inorganic, but that doesn't mean that they are. Panpsychism seems to be recognising that idea, and going in that direction. It's also regrettable that modern science has rejected animism.

Your last question is the most difficult, and I personally don't have a satisfactory answer. However, there is an idea that floats around in esoteric circles, which I'll express in Christian terms. Why did the ultimate pure consciousness of God want to, or feel the need to, create the universe? He was bored, or lonely, so created the various levels in order to have experiences.