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1) It depends on the church. By laity I believe you mean the members besides the pastor. The laity helps with a lot of the administration of the church, like teaching Sunday school/bible studies, ushers, choir, deacons, etc. In many protestant churches the lay members of the Church vote to select a pastor, deacons, and on the church budget. The laity should be witnessing, doing missions, etc., for Christ.
2) Protestantism has what's called the priesthood of all believers. We don't believe we need an earthly institution or priests to mediate between us and God. 1 Tim. 2:5, "For there is one God, and one mediator between God and men, the man Christ Jesus."
Salvation is not connected to any earthly institution (Church) but is only contingent between the individual and God. So, we don't need a priesthood to confess our sins or convey salvation, each individual is their own priest in that respect.
3) There is no special language used in protestant churches, like the RCC has some Latin masses. Everything is spoken in whatever the common language of the people is.
EDIT
Pastor T, Baptists are Protestants.
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