I read about 4 years ago that an H120 would record digi-in at 44.1 or 48, but not 88.2 or 96k, and that has proven to be accurate. It locks in nicely at 44.1 or 48. If you try to record at 88.2 or 96k the thing won't be able to keep up, and you'll end up with "slow disk" or a stutter, or it just locks or something. I can't remember that actual failure mode I experienced. It did see the incoming signal as 96k, but when you try to actually record it fails miserably.
I've used a few different versions of Rockbox over the years on a few different iRivers (H120 and iHP-120). I think they all only allowed analog in at 44k or less, but one of them might have allowed 48k, I can't remember. When you run optical it will sync to whatever source it sees (assuming you plug in in BEFORE you turn it on). On at least one of them if you boot the iRiver into the recording screen without the UA-5 running and attached it will default to 64k. Then if you plug in the UA-5 and record 44k data you will have "chipmunk sounding" music and you have to go through the "fix file header" routine.
If the H10 allows 16/96 that's interesting. Perhaps it's newer hardware with a faster processor that can actually keep up. Realistically, I don't see it as a huge advantage because I doubt the analog preamp and A/D is good enough to actually capture much data above what 44.1k will capture.
On an H120, yes you can plug a microphone into the Line-in jack and it work. And it will provide about 3V plug-in-power for small mics. If you run mics without a preamp you will probably have to crank the gain. It's been said that setting the gain above +15 is "too noisy". Likewise if you have a signal hot enough that you have to go below 0, you will brickwall... even if it looks good on the screen it will sound like shit afterwards. I've always used an external pre, and I like to use the Auto AGC option. I set the H120 gain to +8 and adjust the external pre such that the H120 meter looks good and if it gets louder by a few dB's the auto-AGC will crank it down accordingly.
Hope that helps.