Using the feed manager you can easily do the export in batches so that the server does not get overloaded. With such amount of products, it may take up to 10-15 minutes for the feed to get generated....
Yes, this is how Product Feeds module works.
If you need the opposite, i.e. your simple products should get attribute values from configurable ones, you can set the Parent option to “Yes” while generating a feed.
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