Some of the system requirements changes that got mentioned above are not correct, but if they are to even be considered, you can always just download a version and test it, then download an older one if you cannot run the one you're after.
I would like to reference the previous comments for their engine explications: staying on 1.26 would cut you off from almost 11 years of development, of which you can, as a mapmaker, even disregard performance improvements to an extent, but you cannot exclude the other parts. The World Editor's limits got increased a lot, many things you required hacky ways to accomplish before now have proper (or in the worst cases at least standardised) methods (as the most simple example, hiding an ability's button. Beforehand you had to try and set it to [0,-11] and that could break on some of the patches, but now there is a native (1.29+) AND the [0,-11] method got official support (1.28+)). For the more advanced example, the instance API, UI APIs and Lua support (1.31), Folder mode (1.31), many more functions to interact with everything from cameras and sounds to getting mouse position, editing special effect rotation, damage events, getters and setters for so many things (part of which is the instance API), and much more.
From the limit increases, there's the absolutely insane ones like the "Raised file size limit from 8 MB to 128 MB" from 1.27.1, the giant list of 1.29.0 increases:
- Object Limit: 30,000
- Neutral Units: 2,048
- Neutral Buildings: 384
- Player Units: 4,320
- Player Buildings: 2,400
- Items: 1,024
- Map Size Limit: 480 x 480
- Tile Slot Limit: 16
- Max Execution Limit: 3,000,000
- Max Food Limit: 999
- Max Resource Limit: 9,999,999
- Array Size Limit: 32,768
- Maximum number of players: 24
I will immediately note that the tile slot limit was previously bypassable using 3rd party hacks over the 1.21 World Editor, but having to resort to 3rd party means also means some extra headache when things break.
Of all those increases, you will probably only feel the object limit and the tile slot limit until your mapmaking gets advanced, the food limit only if you wish to use it as a tertiary resource or counter for something, but the twelve additional players give you a way to do much more, be it up to 12 more computers, or maps that play with over 12 players.
There are also important considerations for advanced players only, like 1.30's "Preloader native no longer requires “Allow Local Files” registry settings" which made way for the
codeless save and load systems that wouldn't require players to hack away at their registry beforehand (needing your players to do any kind of modifications, even worse admin-level modification, to their systems would decimate your playerbase).
Before I accidentally document everything that happened in these almost last almost 11 years, I will stop and turn to the last, the most external but also the most useful, aspect of developing for as new of a version as you can: community resources. Be it just code snippets of full libraries, be it HD models or DDS textures, if anything catches your eye, it would be infuriating to be denied usage of these. Code can only sometimes be converted to an older version (which is of course dictated by whether it uses any new natives), textures can be converted but not without losing quality, HD models have no analogue in versions before 1.32.
From all the data in here, you are not expected to understand it all, but you are recommended to try and understand which parts will affect you. I will not recommend you 1.32 (which you wrongly call Reforged, as Reforged is not one patch nor is it a patch family denoted by the major patch 1.32) due to your post's penultimate paragraph, but make sure to
read up on the patches if you'd like to make an "informed" decision, or just go for 1.31.1 as the newest and most featureful patch in your acceptable range.
As most of this was for your fourth question, I will also try to provide my quick opinions on the first three, as in the patch-sphere there are no correct answers.
1) I run 1.31.1 and 1.32.latest, with occasional opening of old patches for comparison, 1.31.1 I use to run my hostbots on LAN as par of active development, and to play with friends. Both are new, 1.31.1 is useful to any random person for custom campaigns, 1.32.latest is useful for playing on Bnet. Also note that you don't have to buy "Reforged" to play 1.32.latest, just add your CD-keys to your bnet account.
2) The community can't settle on anything. Not only is it too large, it's also very opinionated. Different usecases will benefit from different patches anyway, but you should never really play on anything older than 1.28 because of security concerns and the decreased performance.
3) 1.26 maps (as long as they make use of no bugs), will seamlessly work at least up to 1.31.1, and they will (other than a few non-negligible graphical/UI bugs) work on 1.32.X too. This does not mean you should stay on 1.26 because of the many ways things could be done easier AND better on newer patches.