Yes, the UI is still skinnable, and the default skin is rather... psychedelic.
There's something to be said about the adblocker being a filtering proxy, it can really get anything before it hits the browser.
Do you know how it compares to Privoxy nowadays? Way back then it was the open source but harder to configure alternative, that didn't quite work as well as Proxomitron. But maybe Privoxy continued development and got better, I don't know what direction that project took.
Oh and I personally always really liked the default skin :D
Nope - its green, and hasn't been updated since June... of 2003. I have no idea how it is able to be effective against the modern web, considering in 2003 the biggest issue was annoying pop-up Flash ads which no longer exist. Maybe there are updated plugins or something.