It's generally considered bad form to allow a calliper to hang from the hose.
Those pads are as close to new as is possible. The rotor looks fine. These brakes squeal as they bed in. Mine made me crazy for a while. Thank goodness the OEM pads wore out quick. They died at 5,000 miles. The EBC's squealed a bit, then bedded & are generally quiet. If the noise is bugging you, try some disk brake anti squeal from the auro parts house.
NIce pics,

Yes, that line is the wear limit indicator, though I have no idea how you are supposed to check it easily with the caliper assembly in place.  Crawl underneath, perhaps?  Squealing pads seem to be a Savage signature like the backfire, part of the bike's "character" if you like it.     On my wife's bike the squeal changed to an intermittent scrape when the pads wore out completely.  In the past I used some kind of silicone RTV on the back of auto brake pads that was supposed to damp out high-frequency squeal.   The Clymer manual p.299 says something similar - coat the back of the pads with brake "lubricant" whatever that is.  The only disc brake lubricant I know of is the high-temperature silicone grease for the caliper slider pins.  You don't want too much grease around the pads, that's for sure, so I would go with the small dab of RTV.  Have to check my auto parts store to see if Permatex still makes the stuff.

I can see the copper in those pads, so they're sintered metal. The set of sintered metal pads I used squealed off and on but performed well and lasted a long time.  The ceramic pads I have on now perform just as well and don't squeal at all.  They are supposed to be long-lasting too, but I'll have to wait a while to find out for sure.

I don't know if the sintered metal pads chewed it any faster or not.  I didn't measure the rotor but I didn't notice any visible wear beyond what I had seen with the previous pads, which I assumed were stock since I bought the bike with 1640 miles on it and the pads were nearly gone 1500 miles later.  The ceramics are supposed to be good on the rotor but I haven't verified that.

I put the drilled rotor on mine at the same time I changed to the ceramics.  We'll see how they both fare.

I never add brake fluid, unless there's been a leak. Then, repair & add. Otherwise, the fluid level indicates the amount the pistons in the calliper are out, which is another brake wear indicator.

The stock set are soft and often need replacement at about 3K miles.