Are the Paranet Papers canon?
I'd say they are semi-cannon. It's like authority in law. There's the statute, then court opinions, then "secondary" materials like treatises and law review articles. Even in opinions, you will have different levels of authority.
In the DF's, we have the books and things Jim says (I don't know which one should carry more weight), I'd say the comics come in third, and then you have the Paranet Papers.
But even in the Paranet Papers, Billy (and others he's working with) often questions the veracity of reports they're getting that make up the Paranet Papers. The origins of the LoON are a fourth hand account. (It might have been third or fifth hand). I've also heard mention of a WoJ that the gods they were feeding on have now escaped.
[1]It was stated that most of the red court was descended from the Red King, but clearly some were "not of the blood". ...
[2]We know that older vampires sometimes lose control as it was stated in changes.
1. I took that to mean that they weren't Mayan. Not that they weren't "descended" from the Red King.
2. I don't think it is necessarily an age thing. I think Kelly was likely to become a "blood slave" if she survived much longer.
Harry says some things that make it look like an age thing, but that was his speculation. Bianca also had a problem. That's why she killed her assistant. I think they were all addicts and each individual's level of control was a large part of where their status came from inside the court.