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Castellon

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1. Aztecs are in the exotic tech group, the have1.9 x penalty + Pagan religion -25 tech speed. So you are screwed. Best thing might be to adjust your sliders for max tech (Centralized inventiveness) Also building Manufactories will help.
2. AI can offer provences you do not control in peace settlements.
3. Inflation for the Aztecs is a big problem, only thing you can do is expand and get the gold income below 25% of total.
4. Certainly do not prioritize these provences.
5. which provences go to which CoT is being debated even now. In my experiance Max Mercantilism will help you retain your provences in your CoTs.
6. Better chance of getting a new CoT if you are Freetrade. from my experiance Pagans get few if any CoTs.
7. It should!
8. Never seen the event but Changing to Catholic would let you have better relations with Europe and increase your tech ability, Stability(minor -5 to +6/month) + #of colonists, missionaries and Diplomats. If you then convert the pagan provences to Catholic they will also change to your state culture.

General: Japan is not in the exotic tech group, I think they are in the China tech group, which only has a 1.3 penalty vs your 1.9 also they only suffer -10 for religious group vs your -25. thus the difference in tech levels.
 

Castellon

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Just watch your inflation, now with the incan gold provences added to yours, your inflation can push those tech prices back up.