People already stay on the ISS two to four times as long as Musk's proposed travel time to Mars, and they'll be landing somewhere with a third of Earth's gravity. They might all need to hang out for a day or two to get their Mars legs, but I don't see an issue here either.
Micrometeorite impacts haven't done the ISS any appreciable damage in its nearly 20 year service history. Again, doesn't seem like a problem.
People can definitely survive living almost entirely indoors. I expect VR will be big on Mars. But I think the lack of natural light will really limit the comfort level.
If someone can invent an invisible electromagnetic radiation shield that would change the game.
If we can find some nice lava tubes that can be sealed and pressurized, it might make for some rather spacious dwellings. But yes, I expect the first Martians to effectively be mole people.
I imagine living on Mars would be a lot like living in a place like Whittier Alaska [1] (a town where everyone lives in the same building). Not for everyone, but some people might like it.
[1] http://www.npr.org/2015/01/18/378162264/welcome-to-whittier-...
http://www.sr2s.eu/project-news/19-eu-space-project-will-all...
A penny-sized hole would give time to patch, and suits would likely be designed to compartmentalize in a leak. In a true worst-case scenario, chimp studies in the 1970s showed they could survive several minutes of total vacuum.
https://www.scientificamerican.com/article/survival-in-space...
These year long stays were on the space station, which has similar or less shielding. The Earth's magnetic field helps, but really, by the time you get to your Mars habitat with unlimited shielding mass available, your total dose is not that high.
http://www.theverge.com/2016/3/1/11138102/scott-kelly-year-i...
I guess they aren't well characterized yet.
Early travelers will face very significant risks. Radiation and zero g are indeed risks, but a minor compared to the other risks.
If you have a 5% of dying in transit or at Mars due to equipment failure, as well as a 2% increased chance of getting cancer at some time in the future, the first obviously is the one to worry about.
Have there ever been any serious plans or proposals to do that?
You really want a pretty large diameter so that you don't have a huge gravity gradient causing your astronauts discomfort. Tethers might be more practical than the classical doughnut designs for the near future.
I'm thinking (no spoilers) specifically of how Ceres, having been spun up to provide artificial gravity, becomes a destination for expecting mothers trying to avoid complications associated with low-G.