There could also be characters who are a bit skeptical. Dolores, with her ability to hear everything, might be able to tell if the fanfiction is based on real events or just pure imagination. If it's too far - fetched, she might be less impressed. However, overall, most characters would probably see it as a form of celebration of their story and be at least somewhat entertained by it.
The younger characters in Encanto like Antonio would be excited. He loves stories and new ideas, so Mirabel fanfiction would be like a new adventure for him. He might want to share it with his animal friends. And Dolores, with her ability to hear everything, might already know about the fanfiction. She could be either intrigued or a bit worried depending on how the fanfiction is being received by the rest of the village. If it's causing a stir, she might be concerned about the family's reputation, but if it's positive, she would likely be quietly supportive.
Inosuke doesn't become a Hashira in the manga. The story progresses with him having other significant experiences and achievements instead of achieving that specific position.
It's hard to give an exact number. Different story arcs and battles led to the deaths of multiple hashira. Some died heroically, while others met their fate in unexpected ways. The count changes as the manga progresses.
Definitely not. Genya remains outside the ranks of Hashira throughout the manga. This is because of a combination of factors such as his skills, experiences, and the overall direction of the story.
They might be really surprised. Some characters could be flattered by the positive portrayals in the fanfiction. For example, Mirabel might be happy to see different interpretations of her story and how she's seen as a hero in some fics.