1. Running each site under separate privileges may help prevent someone who hacks one site from hacking all the other sites. But I would much rather run one FastCGI process per site (hint: worker+suexec) than go to all the suPHP hassle.
2. Wordpress has had a rather bad track record when it comes to security. Those PHP scripts contain tons of holes through which an attacker could hijack your site. You can try to minimize damages, though, by separating privileges and tightening some php.ini settings (open_basedir, safe_mode, allow_url_fopen, display_errors, etc.)
And don't forget to secure SSH.
3. The php5 package in Debian pulls in prefork by default. If you want FastCGI, you should install php5-cgi instead.
4. PHP has numerous filesystem-related functions as well as a generic exec() tool. So if one of your PHP scripts gets hijacked by a cracker, the script can do pretty much anything a logged-in user would be able to do.
Example PHP code:
Code:
file_get_contents('/etc/passwd');
exec('/nasty/command');