Yes, it is at rest if and only if the forces are in balance, but you cannot use that to prove one is true unless you have first proved the other is true by some other means. Otherwise you could apply that to the block on water case and say that should be at rest too.
Right.
The block pressing on the floor deforms it. The floor, being rigid, resists deformation and develops an increasing resistance until it is sufficient to prevent further ingress of the block.
In short, we can define the normal force that rigid bodies exert on each other as the minimum force required to prevent interpenetration.
Applying this to case D, it should be clear that if the mass centre of the rod descends significantly then something has to give: bend, break or be crushed. You could make that rigorous through geometry; no need to analyse forces and torques.
This is is the argument I was hinting at in post #10.