according to COE, (initial)PE + KE = PE + KE(final) so i think that its better to use this instead of your equation.For example,if the object were to be released with some initial velocity,the KE(initial) would not be 0 so total initial energy is mgh+1/2mv^2 instead of mgh.Btw,it is more precise to write change of PE = -change of KE as this shows that energy is conserved.
Yes, decrease in PE= increase in KE and vice versa. If there's friction, decrease in PE= increase in KE + energy 'lost' to surroundings, so increase in KE<decrease in PE.