#1
For some reason, everytime I put up a video of me playing, a lot of people say that I have bad picking techinque, or I should change the way I hold the pick.

If you wanna know what I'm talking about, here's a video of me:

http://www.youtube.com/watch?v=NLpyH3fU5l4

Would it matter that much if I change the way I hold my pick? If it does matter, what would the correct way of holding it be?

Right now If I try soloing without holding like this, I lose my control over the pick.
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#2
well, if that's how u play, then that's how u play, it doesn't seem to affect ur playing,

u do got a funky lookin vibrato though, u like use ur whole arm, it just takes a couple fingers
#3
You use your whole arm really. Use only your wrist. Usually the whole problem starts from the shoulder. I have the same issue with cello, so my teacher just pushes my shoulder down and tells me to hold my elbow at a 90" angle and just use my wrist. Maybe try that? Good job on the solo by the way.